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2023-03-31

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
Mar 31
,
 
2023
 - 
10
min read

Product update - 23rd May 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  

New Integration and Features

Embedded Image

We’re excited to announce that our integration with Cronos is now live!

Simply copy and paste your Cronos wallet addresses in the 'Import Data' page, and we will pull in all of your Cronos transactions.

Support for ERC-1155 transactions

We are now able to process and reconcile transactions involving ERC-1155 tokens. This includes minting, buying, selling and converting a ERC-721 to a ERC-1155. This is applicable for: Ethereum, Polygon, Avalanche, BSC, Fantom and Arbitrum.

Add comments on transactions and new comment filter

Have you ever found yourself wanting to flag and come back to a certain transaction? Or perhaps, wanting to write down further context for your future self or your accountant? This is where our new comment functionality comes into use. You are now able to leave comments on transactions, filter by transactions with comments, as well as delete comments.

New report: German SO report

German users can now generate the SO report, with all the relevant fields already pre-filled with their data. In order to gain access to this report, head to the 'Get Report' page, and select the SO report. Note that this report is only available in PDF format.

New report: Canada TurboTax report

Canadian users can now download a Canada Turbotax PDF. Users can paste those values into TurboTax Online to file their reports to the CRA.

New category: collateral withdrawal

In addition to our existing 'collateral deposit' category, we’ve now added a collateral withdrawal category. This category can be used for withdrawing collateral from a borrowing and lending protocol, where the asset moves back into your wallet.

Accountant feature: revoke access to team members

For users on our accountant plan, admin accountants can now revoke access to team members. By revoking a team member's access, they will no longer be able to access your Accountant Dashboard. Any client data which they have been working on will be saved, and will still be accessible by any other invited team members.

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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Comience gratis

Importe sus transacciones y genere una vista previa del informe gratuita.

Blog

23 May 2022

X

 Min read

Product update - 23rd May 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.

Shane Brunette

This tax guide is regularly updated: Last Update 

....

March

31

2023

New Integration and Features

Embedded Image

We’re excited to announce that our integration with Cronos is now live!

Simply copy and paste your Cronos wallet addresses in the 'Import Data' page, and we will pull in all of your Cronos transactions.

Support for ERC-1155 transactions

We are now able to process and reconcile transactions involving ERC-1155 tokens. This includes minting, buying, selling and converting a ERC-721 to a ERC-1155. This is applicable for: Ethereum, Polygon, Avalanche, BSC, Fantom and Arbitrum.

Add comments on transactions and new comment filter

Have you ever found yourself wanting to flag and come back to a certain transaction? Or perhaps, wanting to write down further context for your future self or your accountant? This is where our new comment functionality comes into use. You are now able to leave comments on transactions, filter by transactions with comments, as well as delete comments.

New report: German SO report

German users can now generate the SO report, with all the relevant fields already pre-filled with their data. In order to gain access to this report, head to the 'Get Report' page, and select the SO report. Note that this report is only available in PDF format.

New report: Canada TurboTax report

Canadian users can now download a Canada Turbotax PDF. Users can paste those values into TurboTax Online to file their reports to the CRA.

New category: collateral withdrawal

In addition to our existing 'collateral deposit' category, we’ve now added a collateral withdrawal category. This category can be used for withdrawing collateral from a borrowing and lending protocol, where the asset moves back into your wallet.

Accountant feature: revoke access to team members

For users on our accountant plan, admin accountants can now revoke access to team members. By revoking a team member's access, they will no longer be able to access your Accountant Dashboard. Any client data which they have been working on will be saved, and will still be accessible by any other invited team members.

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Preguntas frecuentes

¿Cómo se calcula el impuesto a las criptomonedas?

Puede ser responsable tanto de las ganancias de capital como del impuesto sobre la renta según el tipo de transacción de criptomonedas y sus circunstancias individuales. Por ejemplo, es posible que deba pagar ganancias de capital sobre las ganancias obtenidas por la compra y venta de criptomonedas, o pagar impuestos sobre la renta sobre los intereses obtenidos al mantener criptomonedas.

¿Cómo puede ayudar Summ con los impuestos sobre criptomonedas?

Solo necesita importar su historial de transacciones y lo ayudaremos a categorizar sus transacciones y calcular las ganancias y los ingresos obtenidos. Luego puede generar los informes apropiados para enviarlos a su contador y mantener registros detallados a mano para fines de auditoría.

¿Manejas actividades no cambiarias?

Manejamos todas las actividades que no son de intercambio, como transacciones en cadena como Airdrops, Stake, Minería, ICO y otras actividades de DeFi. No importa qué actividad haya realizado en criptografía, lo cubrimos con nuestra función de categorización fácil de usar, similar a Expensify.

¿Qué pasa si mi intercambio no está en la lista de intercambios admitidos?

Cubrimos cientos de intercambios, billeteras y cadenas de bloques, pero si no ve su intercambio en la lista admitida, estaremos encantados de trabajar con usted para que lo admita. Simplemente comuníquese con [email protected] o mediante la función de soporte por chat en la aplicación y lo solucionaremos.

¿Cómo funciona la prueba gratuita?

La plataforma es de uso gratuito inmediatamente después de registrarse, lo que le permite importar sus transacciones y aprovechar nuestro motor inteligente de sugerencias y categorización automática, seguimiento de cartera y soporte DeFi y NFT. Para acceder a los informes, la herramienta de recolección de pérdidas fiscales o el chat y soporte prioritario, deberá actualizar al plan pago correspondiente.

Automatiza tu contabilidad criptográfica

01

Sincronizar y centralizar transacciones

Importe desde más de 1000 fuentes. Centralice su actividad criptográfica y ahorre el valioso tiempo que normalmente se dedica al seguimiento de transacciones en varias plataformas.
02

Etiquetado, reglas y conciliación automatizados

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.