How to report crypto taxes with Drake Software?
18 May, 2023 · 3 min read
With CoinTracking, you can report your crypto taxes with several tax tools, including Drake Software. Our crypto tax software enables you to import trades, get your gains/losses, and generate tax reports.
From there, you can easily load your report on your preferred tax software (including Drake) and deliver your tax return.
In this article, we’ll cover how crypto is taxed in the US, how to generate tax reports with Drake Software, what tax forms you need to report your crypto taxes, and more!
Does CoinTracking work with Drake Software?
Yes, CoinTracking integrates with Drake Software, enabling you to generate a tax report fit to upload to Drake and easily do your crypto taxes.
Here’s how to calculate your gains from crypto trading with CoinTracking and generate a ready-to-upload file for Drake Software:
- Track your portfolio by importing your crypto trades into CoinTracking from our 100s of options (e.g., exchanges, wallets, blockchain addresses);
- CoinTracking calculates your crypto gains/losses according to your chosen accounting method (e.g., FIFO, LIFO, OPTI, HMRC, ACB);
- Generate a tax report for your desired tax year;
4. On the “Overview of all created Tax Reports” section of the page, click on “Load Report” and then select Drake from the options;
5. On the “Capital Gains Report – Your Sales of Capital Assets” section of the page, you’ll find “Drake” as one of the options.
6. By clicking on “Drake,” you’ll automatically download your tax report fit for Drake as a CSV file.
How do I enter crypto in Drake?
You can import your crypto trades with Drake Software by calculating your crypto taxes with CoinTracking and then importing a CSV file for Drake.
You can do this by importing your crypto trades to CoinTracking, getting your gains/losses, generating a tax report, and then downloading that report as a CSV file to upload to Drake Software.
How is crypto taxed in the US?
In the US, you must report crypto gains and income in your taxes, as both trading and earning crypto are taxed.
If you trade cryptocurrencies for other coins or NFTs, you’ll have to determine the gains/losses of each trade and pay capital gains taxes on the profits. The crypto tax rate will depend on the holding period of the original coin, ranging from 0% to 37% (short-term capital gains tax rate/ long-term capital gains tax rate).
If you earn crypto from activities like airdrops, hard forks, staking rewards, crypto interest products, or salaries, you’d have to report those as income.
How do I report crypto on my taxes?
In the US, you have to report your crypto activities by:
- Answering the crypto question on Form 1040;
- Reporting your crypto gains/losses on Form 8949 and Schedule D of your Form 1040;
- Declaring your crypto income in your Individual US Income Tax Return.
Discover more about crypto tax reporting and which tax forms you need for crypto.
Before Drake, do your crypto taxes with CoinTracking
With CoinTracking, you can import crypto trades, track gains/losses, and generate tax reports. CoinTracking is your full crypto tax software, enabling:
- 110+ available exchanges, wallets, blockchains, and more!
- NFT and DeFi ready!
- Capital gains/losses, according to several accounting methods (e.g., FIFO, LIFO, HMRC, ACB)
- 25+ reporting features, including which coins offer you a tax-free rate.
- Tax reports fit to Drake Software
CoinTracking Full-Service: Crypto taxes done for you!
CoinTracking also offers a Full Service for US crypto investors. A crypto reconciliation tax expert from Polygon Advisory Group, a leading US crypto tax firm, will review your CoinTracking account, help fix any errors, and ensure you submit your crypto tax reports error-free.
Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.