Accointing

How the TTO Tool Works

Some crypto traders don’t really pay attention to the potential tax consequences of their trades until it’s too late. It can easily be the case that if a trader had sold a different coin from a different wallet using the same strategy, they could have reduced their tax bill substantially.

To fill this gap, Accointing’s TTO tool can help determine tax consequences before making a trade to help reduce tax deductibles. Before a trade is made, users can take a look at their dashboard to see the tax implications of the particular coin they want to sell.

The difference in tax rates for selling the same coin held in different wallets can be significant. By displaying the tax implications of selling different coins in a portfolio and which coins attract the lowest taxes, users can manage their deductibles and potentially save thousands of dollars.

Getting Ready for Tax Time

According to Accointing’s business developer, in the US the highest marginal tax rate at the federal level is 37 per cent if you sell one coin, but selling the same coin from a different wallet for the same price can result in a tax rate as low as 15 per cent. The platform allows users to see these implications before making a trade, which could cost them more at tax time. Accointing also has a solution for Australian users to help them at tax time.

By planning ahead, the tool can show users how their tax situation will develop by tracking positions across all wallets. And since all the data is stored on the platform, when it comes around to tax filing time users can simply print their tax report.

In October last year, Melbourne’s RMIT University urged the Australian government to reform crypto capital gains tax. Here are some additional tax tips for Australian traders published by the Australian Tax Office (ATO).

ACCOINTING.com.com, a leading crypto tax and portfolio tracking platform, is the perfect solution for filing your Australian Crypto Tax Report. The Australian Tax Office (ATO) has created clear guidelines to help people file their cryptocurrency taxes each year.

ACCOINTING.com makes it easy to file your crypto taxes in full compliance with the ATO by allowing you to import over 300 of the most used exchanges and wallets to then process all of the transactions you have made during the year. With the help of ACCOINTING.com, you will be able to enter your entire year of cryptocurrency activity into the system and find out whether you have gained or lost money in total, and how much in taxes you may owe or are able to tax-loss harvest in the event of an overall loss.

Crypto tax software like ACCOINTING.com makes the process easy to handle for anyone, regardless of their crypto tax knowledge. When a capital gain or loss is made from cryptocurrency, it is calculated by taking the market value of the cryptocurrency in Australian Dollars at the time of disposal. Whether you are an investor or active trader, ACCOINTING.com has the tools to help you process a fully compliant tax return for the Australian Tax Office. Investors from Australia benefit from a long-term 50% capital gains discount on their taxes if they hold their cryptocurrency for over 12 months without making any buys or sells on what they were holding.

ACCOINTING.com’s robust crypto tax software can efficiently calculate all capital gains tax and income tax to then report to the ATO each year. Without using a software like ACCOINTING.com to do your crypto taxes, the process would be increasingly difficult with each extra exchange, wallet, trade, and other activity that is needed to be accounted for on the tax report.

Regardless whether you use cryptocurrency as an investment, receive staking rewards and airdrops, or use crypto for personal use, ACCOINTING.com is a great option to handle all of your crypto tax needs. There are a wide range of scenarios when dealing with cryptocurrency when it comes to classifying whether a transaction, deposit, withdrawal, or sale is categorised as a taxable event.

Handling a mixed basket of cryptocurrency transaction scenarios is one of ACCOINTING.com’s many specialties. Those people who actively buy, trade, earn airdrops, mine cryptocurrency, earn staking rewards and more can easily input their transaction data into the ACCOINTING.com system to find out which actions they made that were taxable or tax free.

This information is crucial when submitting an accurate tax report to the ATO in relation to crypto activity each year. In addition, users who sell, swap, use crypto as payment, for gambling, gifts, interest paid, lost funds, and more can use ACCOINTING.com to get accurate and efficient advice on what needs to be reported as taxed and what can be used to save money from harvesting potential losses.