According to the experts of the website switchere.com/exchange/buy-
To shed some light on why it is so difficult to calculate the tax on cryptocurrency, we present below everything that needs to be taken into account.
What Should Be Considered When Calculating the Tax On Cryptocurrency?
The taxpayer must:
Find data. This is not easy, since there are now more than 170 crypto-exchanges around the world, every week on average one exchange is opened, and this number does not include OTC exchanges;
Highlight the required data. Different elements of this information may not be the same, although they may have the same name, so it is difficult to determine which element to guide. For example, does the phrase ‘number of coins’ mean the same thing on different exchange sites?;
Extract data. Again, this is difficult, because on some exchanges there is a limitation on the age of information or there are some limitations if you have reached certain volumes of transactions;
Send data. This is one of the most difficult points for those who are trying to retrieve information via the API since some service work is always going on;
Arrange data. If all of the above stages are completed, then now the taxpayer has a whole set of different files. It will take time and certain skills to organize all data;
Check data. It is imperative to check the data so as not to miss anything. But there is no support service yet;
Correct the data. This is difficult because most taxpayers are not the ones who can calculate taxes professionally;
Collect data into one file. Everything is clear here. Google Sheets can be applied at this stage;
Process the data. It is necessary to compare profit and loss. When was it bought or sold? What is the average price? But what about several purchases at different prices?;
Reconcile data. All data must be processed in full;
Store data. It is important to choose a secure storage location;
Export data. Now the taxpayer needs to take all this processed data and convert it into a file that can be sent to the tax office.
For most taxpayers, it is quite difficult to go through all of the above steps. Each step has its own pitfalls.
Where to Look for Help?
In our opinion, there are three ways to solve this problem:
Firstly, regulators must understand that the discrepancy between the actual amount of taxes is not always caused by unwillingness to pay;
Secondly, marketplaces must adopt some kind of storage standards to support the collection and export of information for tax purposes;
Thirdly, taxpayers need to find a service that has the right tools and an understanding of how to work with them. This way looks quite effective. It will be great if such a service will work for a reasonable fee and there will no hidden fees.
Useful Online Platform Switchere.com
Taking into account all of the above, we would like to recommend visiting the best site Switchere.com and using its services. Everyone who deals with crypto can use its easiest services instantly. It is the most convenient method to buy btc online quickly and easily. The support without prepaid is possible. To buy bitcoin online in this place, you just need to have a debit or credit card of any bank (Mastercard, Visa, etc.) and an electronic wallet with a registered ID address. Besides the opportunity to buy btc with credit card for USD, euro, etc., you can also use a quick online converter to convert one currency to another.
So, if you want to buy cryptocurrency (Bitcoin, EST, etc.) at the lowest price and not spend an extra dollar, use the instant services of Switchere.com. The purchase process is very simple, no complicated registration and verification required. Everything is fast and optimized. Get quality help now!
