BearTax Review – Cryptocurrency Tax Software

While crypto may be an unregulated space, Mr Taxman is still going to want his cut of any gains. BearTax can help keep track of your crypto transactions for tax purposes, and ease the headache of record-keeping in preparation for tax time.

Update: As of 2022 BearTax has been renamed Fyn, however the underlying company remains the same.

The Good

  • Starting at $10 per year, it’s a super cheap solution for working out what tax you have to pay on your crypto trades
  • Offers different levels of access for accounting professionals
  • The software integrates with crypto trading platforms
  • The Beartax platform also integrates with tax reporting software
  • Blog section on the site have helpful info and articles

The Bad

  • Its integration is limited to crypto transactions on certain exchanges and does not support DeFi or margin trading
  • Other similar platforms also function as a crypto tracker for your portfolio, but Beartax doesn’t
  • Crypto tax reporting is only available in limited countries, such as Australia, US, Canada and India

Verdict: Although functionality is a bit limited, the prices are hard to beat for crypto tax solutions

CaptainFI is not a Financial Advisor and the information below is not financial advice. This website is reader-supported, which means we may be paid when you visit links to partner or featured sites, by advertising or sponsored content on the site. For more information please read my Privacy PolicyTerms of Use, and Financial Disclaimer.

Introduction

Crypto has been a pretty wild ride over the past year, living up to its reputation as being a volatile and unregulated space. From stellar highs of Bitcoin, to the spectacular death spiral of stablecoin Terra/ Luna, crypto is not for the faint-hearted.

With a plethora of crypto trading platforms, it has never been easier to shift money here and there to take advantage of crypto movements. In amongst all the crypto drama, often the last thing on your mind when you’re planning your next “Elon-esque” crypto move is a prudent record-keeping strategy for the tax man.

The ATO is pretty good at wearing their heart on the sleeve and telling the community upfront what they will be targeting come tax time. As unregulated as the crypto space is, that doesn’t stop the ATO from wanting their piece of the action when it comes to such a huge bucket of cash that crypto represents.

The ATO will be paying close attention to crypto gains, and thankfully, you can also declare losses as well. This is where the BearTax comes in, keeping track of your crypto transaction so that at tax time, your transaction records and tax documents are in order.

 Crypto’s excruciating week has traders bracing themselves for next crisis | The Straits Times

What is Beartax?

BearTax is an online platform and phone app designed for crypto tax accounting. Using Beartax, you can generate a full tax report of your crypto transactions for tax purposes.

There are other platforms in the crypto tax record space, such as CoinTracker and CoinLedger. The advantage of BearTax over these other platforms is a super low $10 entry-level fee. However, BearTax generates a tax report on your transactions and doesn’t act as a portfolio tracker, which is a feature that other platforms may offer.

Compare the Best Crypto Tax Software & Services for Australia (finty.com)

beartax

“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.”

Bear.tax/traderfaq

Who uses Beartax?

Beartax is designed to be used from the novice crypto dabbler, to crypto traders, and all the way to accounting professionals who may do crypto tax prep for their clients.

With the supercheap $10 price point for less than 20 transactions, BearTax is definitely well positioned for the type of crypto investor that does a few transactions a year.

According to the ATO, you need to keep records when you buy, hold and dispose of crypto, for up to five years. BearTax can generate a full report on your transactions to help meet this obligation.

Tax treatment of cryptocurrencies | Australian Taxation Office (ato.gov.au)

How does Beartax work?

Beartax works by linking with crypto trading platforms and downloading the crypto transaction history. There are a number of parts to a Beartax download:

·        The user transports the crypto transaction history from the crypto trading platform

·        The software reviews all of the transactions.

·        Beartax converts the information into a document suitable for tax filing

·        The tax document can be uploaded into regular software for tax reporting

beartax
Autogenerated tax documents make things much easier at tax time

In what countries does it work?

Beartax currently only caters to Australia, US, Canada and India. Beartax only offers tax advice and support to those countries. So while crypto enthusiasts in other countries can access the BearTax platform, the information on there may not be as useful as it is for those that live, or lodge tax returns, in the targeted countries.

People in other countries can still run a report to get an idea of what their tax may be, but they won’t have the benefit of automation that the 4 main countries have.

How much does Beartax cost?

Beartax has a range of fees, depending on how many crypto trades you make and whether you’re a novice, through to professional. It’s a typical arrangement, where you get access to more features, with the more you’re willing to pay:

·        Entry-level – $10 per year – allows reporting on up to 20 crypto transactions a year

·        Intermediate – $45 per year – allows up to 200 crypto trades per year and customer support through email

·        Expert – $85 per year – up to 1000 transactions, ability to export data from multiple accounts from the same exchange and live chat support

·        Professional – $200 per year – includes unlimited transactions and support from an accountant

beartax pricing
Beartax pricing

What exchanges does Beartax support/integrate with?

Beartax has seamless integration with around 50 crypto trading platforms, with the usual big names represented, such as Binance, Coinspot and Coinbase. The truth is, not many people would have tax reporting at the front of their minds when signing up to a crypto trading platform, so Beartax may not integrate with your platform. However, in those cases, there is a manual download feature where you can add transactions to Beartax manually.

Exchanges supported by BearTax

Advantages of using Beartax

  • Starting at $10 per year, it’s a super cheap solution for working out what tax you have to pay on your crypto trades
  • Offers different levels of access for accounting professionals
  • The software integrates with crypto trading platforms
  • The Beartax platform also integrates with tax reporting software
  • Blog section on the site have helpful info and articles
beartax
Beartax has a blog section on their site with helpful crypto related articles and info

Disadvantages of using Beartax

  • Its integration is limited to crypto transactions on certain exchanges and does not support DeFi or margin trading
  • Other similar platforms also function as a crypto tracker for your portfolio, but Beartax doesn’t
  • Crypto tax reporting is only available in limited countries, such as Australia, US, Canada and India

FAQs about Beartax:

Where is Beartax located?

Beartax was founded in 2018 in Georgia, USA. While its head office is located in Georgia, and caters to US crypto buyers and sellers, it offers crypto tax support and advice to Australia, Canada and India.

BearTax – Headquarter Locations, Products, Competitors, Financials, Employees (cbinsights.com)

Is my data safe with Beartax?

It’s natural for anyone in crypto to be wary of platforms that may be able to access your crypto holdings. BearTax is safe when accessing your transaction data. You don’t provide your private key data for your wallet, they use a read-only data key that is deleted immediately after data collection.  

“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.”

Bear.tax/traderfaq

Is it easy to use Beartax?

Beartax is a straightforward crypto tax platform, that’s easy to use. There is also support via email or live chat support if you need technical help.

Do I have to pay Crypto taxes if I don’t sell?

If you buy and hold crypto, you don’t need to pay tax on any gains. However, when you dispose of crypto, such as by selling, and you’ve made capital gains, then you may have to pay tax.

 Cryptocurrency and tax | Australian Taxation Office (ato.gov.au)

Conclusion

If you buy, hold and dispose of crypto, then according to the ATO, you have to keep records of your transactions for tax purposes. While it’s possible to do your own taxes and keep these records yourself, a cryptocurrency tax software platform like Beartax can make the task much easier. Beartax does the number crunching for you and helps get your crypto tax reporting in order. At a modest $10 entry price point, BearTax offers a crypto tax reporting solution at the right price.

You might also be interested in my articles on:

H And R Block Review – No-Frills Tax Accounting

Bamboo App Review; Micro-Investing For Crypto

Do I Have To Pay Tax On Passive Income In Australia?

Franking Credits And Tax Refunds On Australian Share Investments

Financial Disclaimer

Financial Disclaimer: CaptainFI is NOT a financial advisor and does not hold an AFSL. This is not financial Advice!

I am not a financial adviser and I do not hold an Australian Financial Services Licence (AFSL). In this article, I am giving you factual, balanced information without judgment or bias, to the best of my ability. I am not giving you any general or personal financial advice about what you should do with your investments. Just because I do something with my money (or use a particular service or platform) doesn’t mean it is automatically appropriate for your personal circumstances. I do not recommend nor endorse any financial or investment product, and my usage or opinion of any product should not be interpreted as an endorsement, advertisement, or intent to influence.

I can only provide factual information based on my journey to Financial Independence, and that is provided for general informational and entertainment purposes only. I make no guarantee about the performance of any product, and although I strive to keep the information accurate and updated as it changes, I make no guarantee about the correctness of reviews or information posted.

Remember – you always need to do your own independent research and due diligence before making any transaction. This includes reading and analysing Product Disclosure Statements, Terms and Conditions, Service Arrangement and Fee Structures. It is always smart to compare products and discuss them, but ultimately you need to take responsibility for your use of any particular product and make sure it suits your personal circumstances. If you need help and would like to obtain personal financial advice about which investment options or platforms may be right for you, please talk to a licensed financial adviser or AFSL holder – you can take the first steps to find a financial advisor by reading this interview, or by visiting the ASIC financial adviser register and searching in your area.

For more information please read my Privacy PolicyTerms of Use, and Financial Disclaimer.

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