On its own website we can get examples of transaction records, capital gains reports and the sample form 8949 that CoinTracker is able to create. The sample form 8949 is used in the United States for the declaration of capital gains taxes. Below we can see the steps to use this tool:
The first step is to link CoinTracker with the virtual wallets used by the client. In this way, we have access to the transactions records to generate the corresponding report.
The next step is where CoinTracker generates the capital gains report, taking into account the prices involved in each of the transactions. Ideally, the person at this point will manually verify the report to avoid any mistake. As we all know, the prices of cryptocurrencies change very quickly and this can obviously affect the corresponding tax.
The last step is to receive the tax report resulting from all the calculations, so that the user only has to pay that tax and send the necessary documentation.
It is important to know that CoinTracker is able to read information from a large number of virtual wallets and exchanges, in addition, it is compatible with the vast majority of cryptocurrencies. On its website, we can read that it is compatible with more than 2,500 different cryptocurrencies!
This is my English translation of a segment from one of my previous Spanish articles.
DISCLAIMER
This is not financial advice, nor a guarantee or promise in regards to any result that may be obtained from using the above content. The information provided here is for informational and entertainment purposes only. It should not be considered as financial and/or investment advice. No person should make any kind of financial decision without first consulting their own financial adviser and/or conducting their own research and due diligence.
