Filing taxes the first time when you have sold or spent Bitcoins can be a confusing, sometimes daunting, experience. Suddenly you aren't quite sure what goes where.
- Do I have to report spending?
- Do I have to report coins I own?
- What kind of income is it?
- What about my mining?
- What if I bought some Ethereum?
This is an interesting write-up in going through this process with 2015 taxes, by the author of the Incorporating Bitcoin website.
A mixture of mining, trading and spending transactions were imported to create the income and capital gains reports to be imported into TurboTax. However, as the author discovered, the online version TurboTax does not import capital gains records (unlike their offline/CD version). This is still a peculilar situation, since it would be a useful service and one that is available from their competitors, like TaxACT.
If you are filing your taxes for the first time this year, perhaps this will provide some insights into the process. You can also read our three-part series on Filing your Bitcoin Taxes and our popular summary of the Ten Things to Remember when Filing Bitcoin Taxes.
If you need help calculating your mining income or capital gains for Bitcoin, Ethereum or any other digial currency, then sign up with Bitcoin Taxes. It is everything you need and completely FREE for up to 100 transactions.