So I've been looking into how to file my capital gains for bitcoin in Japan.
Thankfully the Japanese tax authority provided a detailed report on how to handle your taxes, including trading, losses, margin trading, mining, spending, and gifts.
https://www.nta.go.jp/shiraberu/zeiho-kaishaku/joho-zeikaishaku/shotoku/shinkoku/171127/01.pdf
For some reason the recommended calculation is not FIFO but Moving Average Cost basis or Total Average Cost basis.
I'm hoping to go with the Moving Average Cost basis, but depending on which service I use that may be limited.
Bitcoin.tax handles average calculations well, but the problem I have with them is that everything is in dollars. That wouldn't be a problem except every time I do a BTC/JPY trade it becomes a BTC/JPY/USD trade, causing me to rack up fake capital gains for the JPY/USD on every BTC <-> JPY trade group.
This adds up over +1000 trades and make it look like I have >$1000 gains than I really have. So until they fix that I'm kinda stuck.
As for cointracking.info they don't provide Average Cost Basis but I don't think the Japanese authorities will mind if I use FIFO (it usually results in more taxes with upwards trends anyway).
The issue is that cointracking is so expensive with the current BTC! It's 0.28 btc for the unlimited plan, which is around $5000 now! The other yearly plans are cheaper but I'm in this for the long run son!
So in order to offset my cost I'm hoping other people will join in and try cointracking with me.
I've included my referral link below, this will let YOU get 10% off your purchase, and I get some bitcoin back. win-win.
https://cointracking.info?ref=Z527929
Hopefully there are other people here looking to do their taxes properly.
Good luck out there!
Original post: http://zechdz.blogspot.com/2017/12/cointrackinginfo-bitcointax.html
