Frequently asked questions by cryptocurrency traders.
Let us help answer the most common questions you might have.
What is BearTax and how can it help with cryptocurrency taxation?
We are BearTax, a software that enables Individuals, CPAs, and Accounting firms to calculate the performance of their crypto investments for a given tax year for tax reporting purposes. We are incorporated in Georgia, USA and you can reach us on firstname.lastname@example.org or via the chatbox on the bottom right corner.
Disclaimer: We are not a financial advisor or a certified tax professional. Please consider our platform as a tool helping you to calculate, but you need to report these numbers to your CPA or tax preparer and file accordingly.
Why do you need an email id while registering?
Providing your email will help us in communicating with you securely. Also, to send out activation email, notify when certain events are done like importing transactions, calculation of gain/loss data and when tax forms are ready to download.
I didn't receive the activation email in my account!
You'll receive an activation email as soon as you signup. Please check your Updates or Promotions tab on Gmail if not in the primary inbox. If you couldn't find anywhere in the inbox, please check spam mail. If you don't get an email - it could be an official email and your email provider or company firewall must be blocking it - in such case, contact us using the chatbox on the bottom right corner and we'll help you.
What exchanges are supported on BearTax?
BearTax is integrated with major exchanges like Coinbase, GDAX, Poloniex, Gemini, Binance, Bittrex, Cryptopia and many more. You can import trades from virtually every exchange around the world. If an exchange is not listed, you can use a generic CSV file to upload your trades. This can help you with trades performed on decentralized exchanges
Do you recommend uploading a CSV or to connect API?
We would recommend connecting API instead of CSV upload. This is because you can import your deposits, transactions, and withdrawals in one go for most of the exchanges, without having to upload multiple CSV files. However, exchanges like Gemini doesn't have an API connection, where you need to upload transactions from a CSV file
Why can't I upload a CSV for Coinbase and Coinbase Pro?
As mentioned above, to stand by our recommendations - we've enabled only API or oAuth connection for those which are available. We support CSV upload only if the certain exchange doesn't have API integration to maintain security and accuracy
Is my data safe?
Security is our highest priority. Our architecture prevents any front-end access to data without proper credentials and all of our communications occur through a secure HTTP channel. Always look out for https:// in the URL and lock icon with words SECURE beside the URL.
How do I know that granting API access is secure??
If you read the API access documentation from various providers. API is meant for a third party application to interact with your exchange. Since you are granting only READ ACCESS, there's no way we or anyone else can modify anything on your exchange account.
We will never store your API keys and use it only for establishing a one-time connection to fetch transactions history from exchange and poof! You need to feed us again if you want to import next time.
Could someone hack BearTax and get access to my Coinbase account?
With Coinbase oAuth or API keys, you are granting our platform only a READ ACCESS. Above that, we are not storing your access token or API keys anywhere. So, even if a third party gains access to our servers or hacks our platform, there's no chance of reaching your exchange accounts.
Is this a paid service?
It's FREE to import transactions, calculate gain/loss and view the summary of your gain-loss. We charge only for downloading detailed CSV for tax reporting or capital gains (8949) document.
Our pricing is simple and very competitive. It goes by the number of transactions you've and starts from as low as $0.99. Read more on pricing
I can't download my tax form or gain-loss CSV?
Tax form, which is a capital gains document or 8949 document opens in a popup. If you have an ad-blocker active on BearTax or popups disabled for bear.tax, then your tax form won't open or download. We would request you to disable popup blocker or AdBlock paused on our website.
How do I get my discount code after sharing it on social media?
We are a bootstrapped startup and would love to have some word of mouth marketing for us. So, if you share about us on social media, you can get a 10% discount on tax forms that you need for tax filing. Ping us using the chatbox on the bottom right corner and our support person can provide you the discount code.
I moved coins a lot between exchanges but never sold. How does BearTax consider this?
Moving your digital assets or cryptocurrency across your own accounts on various exchanges is NOT a taxable event. It is like moving your money across your own bank accounts. BearTax handles them pretty neatly and helps you avoid unnecessary taxes.
When you import your transactions from various exchanges to BearTax, it can identify and match the deposits and withdrawals smartly across the exchanges and avoid a ton of taxable events.
How do I calculate my cryptocurrency mining taxes? Does BearTax support that?
Mining a cryptocurrency is considered as income based on the timestamp the cryptocurrency is deposited into your account as a reward. You would need to import a wallet address on which the mining rewards are being awarded and BearTax will be able to consolidate all of them to generate an income report for you.
What is the cost basis? What are the total proceeds?
Accounting jargon could be tricky for normal people or beginners. Cost basis is equivalent to the purchase price for a given quantity of assets and total proceeds are the selling price for a quantity that you disposed of in a trade. Your gain or loss can be determined by subtracting the basis from proceeds for a given quantity of cryptocurrency.
Can I send my cryptocurrency tax documents directly to my accountant?
There are different types of documents that you generate depending on the country you are from. We have the ability on our download page to share the documents directly with your accountant with a single click.
What information is included in the forms provided?
Tax documents vary by country. Auto populated tax documents needed by the tax authorities have pretty standard columns. The auditable CSV that you can save for records or provide to an accountant contains the following information. Asset, Bought on, Cost Basis, Sold on, Total Proceeds, Net Gain/Loss, Short/Long Term.
The exchange on which I have trades got shutdown? How do I handle it?
We suggest our users and the cryptocurrency community keep a good record of your trades. This is very important in such cases where exchanges get hacked or shut down due to operational issues. In most of cases, even when they go defunct - they provide ability to export your trading history in CSV or Excel formats. We would encourage you to download your trade history at the end of every month or a quarter.
Can I import multiple accounts of the same exchange on BearTax?
For any good reasons, if you are having multiple accounts on the same exchange, BearTax can support you in importing all the transactions by API or CSV. If you have such a situation, please reach out to our support folks using chatbox or email.
How do I report the Ethereum I got as a gift from my cousin?
Gifts are common and with the increasing use of cryptocurrency, if you have received a gift from a friend or cousin - it shows up on your transactions as a deposit. Such records that appear out of nowhere will be identified by smart algorithms of Beartax and will be shown for review. You can choose the reason "received as a gift from a friend" and that will let you choose the date on which your friend might have bought - because gifted crypto generally inherits the cost basis (purchase price of the person who gifted).