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2023-02-09

How Investing vs Trading impacts tax

In most cases of buying and selling cryptocurrency as a retail investor, you are participating in investing rather than trading. The two are treated differently for tax purposes.

  • Investing is subject to capital gains tax or income tax, depending on the nature of the transaction.
  • Trading in this case refers to self-employment which is subject to income tax and National Insurance Contributions.

The key difference between investing and trading – along with the different tax treatments, is how losses generated in the crypto-activity can be used.

In their guidance, HMRC have explicitly stated that they would expect it to be exceedingly rare that any crypto-activity constituting buying & selling crypto would be classified as “trading”.

If you are uncertain, speak to a tax advisor as there are always exceptions, including but not limited to, developing tokens and large scale mining.

How is crypto tax calculated in the United States?

You can be liable for both capital gains and income tax depending on the type of cryptocurrency transaction, and your individual circumstances. For example, you might need to pay capital gains on profits from buying and selling cryptocurrency, or pay income tax on interest earned when holding crypto.

CoinLedger

CoinLedger is an accessible crypto tax platform with over 1,000 exchange and wallet integrations.

Best for: Users who want a simple, straightforward experience without complex DeFi needs.

Key differentiator: Offers an unlimited transaction plan for high-volume traders at a fixed price.

Pricing: $49 (100 transactions) to $499+ (10,000+ transactions).

Limitation: Does not generate Schedule D forms - you will need to complete this manually or with other software.

Notable: Strong NFT support with OpenSea integration.

CoinTracker

CoinTracker is a portfolio tracker and tax calculator supporting over 30,000 cryptocurrencies.

Best for: Users who prioritize portfolio tracking alongside tax reporting.

Key differentiator: Direct integrations with TurboTax and H&R Block Desktop.

Pricing: $59 (100 transactions) to $599 (10,000 transactions), with full-service options up to $3,499.

Limitation: Customer support is limited on lower-tier plans - priority support requires the $599 Ultra plan.

Notable: Good security with end-to-end encryption and SOC 2 compliance.

ZenLedger

ZenLedger offers both DIY crypto tax reports and professional full-service accounting.

Best for: Users who want tax loss harvesting included at every pricing tier.

Key differentiator: Tax loss harvesting is available on all plans, not just premium tiers.

Pricing: $49 (100 transactions) to $399 (15,000 transactions).

Limitation: Only offers 400+ exchange integrations - significantly fewer than competitors. Some users report customer support issues with long wait times.

Notable: TurboTax integration and 14-day refund policy.

blog
Feb 9
,
 
2023
 - 
10
min read

Product update - 19 July 2022

At Summ (formerly Crypto Tax Calculator), we are constantly working on improving our product so you can have the best experience at tax time. Check out our blog for the latest product updates.

Key takeaways
This tax guide is regularly updated: Last Update  

We’re SOC 2 Type 1 certified!

Data security and compliance is critical to everything we do at Summ (formerly Crypto Tax Calculator)

Embedded Image

If you would like to learn more about the privacy and security practices which we follow at Summ, visit our new SOC 2 security page.

New Features

UI Uplift: New nav bar

The nav bar is now in our one and only purple. As a part of this update, the Help tab has been replaced with the help icon on the top right of the screen next to the user settings. Don’t forget you can always get in touch with our support team with the purple popup on the bottom right of your screen.

New reconciliation view: Suspected Spam Token

We have created a new reconciliation flow for Suspected Spam tokens. Our algorithm will suggest a list of spam cryptocurrencies, allowing you to then confirm whether or not they should be marked as spam for your tax report.

Clickable rows in report summaries

By clicking on a row in the report summary, a new tab will open up. This tab will show all of the transactions which made up the calculations of the values within that particular row in a report summary. This is valid for all report summaries.

New Get Report popup

Our download reports popup UI has been updated, making it easier than ever to download both PDFs and CSVs for your reports.

New Integration – Lykke

We’re excited to announce that our integration with Lykke is now live! Simply import your transaction history CSV, and we will pull in all of your Lykke transactions, including deposits and withdrawals.

Minor Changes

Since our last product update, we've implemented the following minor updates:

  • Our developers have worked their magic to improve the transaction table's performance

  • Ability to import wallet from the nickname wallet popup

  • Date dividers have been re-introduced in the review transactions table

  • Updated the import steps for Liquid API and ByBit API

  • The Unknown Counterparty reconciliation view has been renamed Suspected Missing Imports

  • New icons on the account menu

Defect Fixes

Since our last product update, we've implemented the following fixes:

  • When hovering over a currency with a shorted name (e.g. CRYPTOTA…), we now show the full name on hover

  • We now show both transaction ID’s and include links to both blockchain explorers for bridge transactions

  • We now only show Missing Market Price warnings for taxable events, rather than also showing this for transfers and non-taxable transactions

The information provided on this website is general in nature and is not tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek professional advice. Summ (formerly Crypto Tax Calculator) disclaims all and any guarantees, undertakings and warranties, expressed or implied, and is not liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or Consequential Loss or damage) arising out of, or in connection with, any use or reliance on the information or advice in this website. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information in this website is no substitute for specialist advice.

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Starten Sie jetzt kostenlos

Importieren Sie Ihre Transaktionen und erstellen Sie eine kostenlose Berichtsvorschau.

Blog

19 July 2022

X

 Min read

Product update - 19 July 2022

At Summ (formerly Crypto Tax Calculator), we are constantly working on improving our product so you can have the best experience at tax time. Check out our blog for the latest product updates.

Samara LeMerle

This tax guide is regularly updated: Last Update 

....

February

9

2023

We’re SOC 2 Type 1 certified!

Data security and compliance is critical to everything we do at Summ (formerly Crypto Tax Calculator)

Embedded Image

If you would like to learn more about the privacy and security practices which we follow at Summ, visit our new SOC 2 security page.

New Features

UI Uplift: New nav bar

The nav bar is now in our one and only purple. As a part of this update, the Help tab has been replaced with the help icon on the top right of the screen next to the user settings. Don’t forget you can always get in touch with our support team with the purple popup on the bottom right of your screen.

New reconciliation view: Suspected Spam Token

We have created a new reconciliation flow for Suspected Spam tokens. Our algorithm will suggest a list of spam cryptocurrencies, allowing you to then confirm whether or not they should be marked as spam for your tax report.

Clickable rows in report summaries

By clicking on a row in the report summary, a new tab will open up. This tab will show all of the transactions which made up the calculations of the values within that particular row in a report summary. This is valid for all report summaries.

New Get Report popup

Our download reports popup UI has been updated, making it easier than ever to download both PDFs and CSVs for your reports.

New Integration – Lykke

We’re excited to announce that our integration with Lykke is now live! Simply import your transaction history CSV, and we will pull in all of your Lykke transactions, including deposits and withdrawals.

Minor Changes

Since our last product update, we've implemented the following minor updates:

  • Our developers have worked their magic to improve the transaction table's performance

  • Ability to import wallet from the nickname wallet popup

  • Date dividers have been re-introduced in the review transactions table

  • Updated the import steps for Liquid API and ByBit API

  • The Unknown Counterparty reconciliation view has been renamed Suspected Missing Imports

  • New icons on the account menu

Defect Fixes

Since our last product update, we've implemented the following fixes:

  • When hovering over a currency with a shorted name (e.g. CRYPTOTA…), we now show the full name on hover

  • We now show both transaction ID’s and include links to both blockchain explorers for bridge transactions

  • We now only show Missing Market Price warnings for taxable events, rather than also showing this for transfers and non-taxable transactions

Discover savings opportunities and lower your tax with Summ

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Automate your record keeping with Summ

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Get started for free

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Häufig gestellte Fragen

Was ist, wenn ich mehr als 200.000 Transaktionen habe?

Wenn du über 200.000 Transaktionen hast, sogar bis zu einer Million, bieten wir individuelle Lösungen für deinen Bedarf. Kontaktiere uns, um die passende Lösung für dich zu finden.

Deckt der Plan alle Steuerjahre ab?

Mit einem aktiven Abo hast du Zugriff auf alle Steuerjahre. Sobald du bezahlt hast, kannst du ein beliebiges Steuerjahr auswählen und den Bericht für alle Steuerjahre so oft herunterladen, wie du möchtest, solange dein Abo aktiv ist.

Wie funktioniert das Transaktionslimit?

Das Transaktionslimit gilt für alle Steuerjahre. Bei den Berechnungen müssen wir alle Transaktionen aus früheren Steuerjahren berücksichtigen.

Was passiert, wenn ich upgraden oder kündigen möchte?

Du kannst jederzeit upgraden und zahlst einfach die Preisdifferenz. Wenn du kündigen möchtest, kannst du das jederzeit im Abrechnungsbereich der App tun.

Wie funktioniert die kostenlose Testphase?

Die Plattform ist direkt nach der Anmeldung kostenlos nutzbar: Du kannst deine Transaktionen importieren und unsere intelligenten Vorschläge und die automatische Kategorisierung, das Portfolio-Tracking sowie die DeFi- und NFT-Unterstützung nutzen. Für den Zugriff auf Berichte, das Tax-Loss-Harvesting-Tool oder Chat- und Priority-Support musst du auf den passenden kostenpflichtigen Plan upgraden.

​Wie geht Summ mit Krypto-Einkommen aus Wallets wie Phantom oder DeFi-Aktivitäten wie Solana Staking um?

​Summ verbindet sich direkt mit Wallets und Blockchains, nicht nur mit Börsen. Einkommen aus Staking, DeFi und nicht-custodial Wallets wie Phantom wird automatisch erfasst und zusammen mit deiner Börsenaktivität kategorisiert – bereit für deinen Bericht.

Automatisieren Sie Ihre Krypto-Buchhaltung

01

SOC 2 Type 2 Certified

As SOC 2 Type 2 compliant, we ensure robust data security, giving customers confidence in entrusting us.
02

Secure organization

We conduct regular and thorough Security & Awareness training for all employees.
03

Full data privacy

Our application only ever requires 'read-only' access to your data.