Seeking free software or spreadsheet to convert cryptocurrency buys/sells to gains/losses (2023 Update)

I'm not aware of anything free or low cost that does this, but I haven't tried doing much of an on-line search. It is possible that a commercial product like Quicken may have this capability.

It turns out that doing this correctly requires some care, so I don't think it would be straightforward to do this in a spreadsheet.

The gain or loss is simply the difference between the money you receive from selling the asset minus your basis (essentially cost) in the asset. There are some more details. See the reference at the end.

Part of the problem is that there is more than one way to determine basis. The default method for most investments is FIFO (first-in, first-out), which means that the first items you buy are the first you sell. Another method is designated lots, where you identify the particular items you want to sell. This must be done at the time you place the sell order and ideally also be reflected in the trade confirmation. Assuming you didn't do that in your sales, you will need to use FIFO. [Mutual funds have a 3rd option, but it doesn't apply here]

You should start by taking a look at IRS pub 550:

Taking your example and using FIFO: Your first purchase of .0278 BTC for $X gives you a basis of X/278 for every .0001 BTC in that lot. Your second purchase of .0788 BTC for $Y gives you a basis of Y/788 for every .0001 BTC in that lot. ... Your first sale of .003 for $Z means use sold .0030 BTC. and your proceeds are Z/30 for every .0001 BTC That uses up .0030 of your first lot of .0278 BTC Your gain/loss on that sale is 30 * Z/30 = Z minus 30 * X/278 (basis from first purchase)

After this sale, your first lot is now .0248 (.0278 - 0.0030) BTC. It still has a basis of X/278 for each .0001, but there are fewer of them.

Additional sales will keep using up the remaining .0248 BTC until it is all sold. Then you start using the next .0788 from the second sale at its basis of Y/788 per 0.0001 BTC You may end up splitting a sale across multiple purchase lots.

If this is too complicated for you to do alone, you should hire a professional.

Thanks for the thoughtful answers. I actually do use Quicken, but only to keep track of my portfolios and net worth.

I created a new Quicken file just for Crypto. I entered all the buy/sells and, yes, Q produces a very nice cap. g/l report.

Again, thanks for taking the time to reply in detail.

Mel

There are several free and low-cost software options available that can help you calculate your cryptocurrency gains and losses from your buys and sells on an exchange and a wallet. Some popular choices include:

CoinTracking: This is a web-based tool that allows you to import your trades from various exchanges and wallets, and it will automatically calculate your gains and losses for you. It's free for up to 200 trades, and paid plans are available for more trades.

CryptoTrader.Tax: This is a web-based tool that allows you to import your trades from various exchanges and wallets, and it will automatically calculate your gains and losses for you. It has a free plan and paid plans are available for more trades.

BearTax: This is a web-based tool that allows you to import your trades from various exchanges and wallets, and it will automatically calculate your gains and losses for you. It has a free plan and paid plans are available for more trades.

TokenTax: This is a web-based tool that allows you to import your trades from various exchanges and wallets, and it will automatically calculate your gains and losses for you. It has a free plan and paid plans are available for more trades.

It's important to keep in mind that these software options are not official or endorsed by the IRS, so it's important to do your own research and consult with a tax professional before using them for tax purposes.

You can also use spreadsheet software like Excel or Google Sheets to create a table of your transactions, and then use formulas to calculate your gains and losses. This method requires more manual work, but it can be a cost-effective way to calculate your gains and losses.

A Google Sheets spreadsheet for calculating your cryptocurrency gains and losses would typically include the following columns:

Date: The date of the transaction Type: Whether it's a buy or sell transaction Symbol: The cryptocurrency symbol (e.g. BTC, ETH, LTC) Quantity: The number of units of the cryptocurrency Price: The price per unit in USD Total Cost: The total cost of the transaction (Quantity x Price) Sale Date: The date of the sale transaction Sale Price: The sale price per unit in USD Sale Total: The total sale proceeds (Quantity x Sale Price) Gain/Loss: The difference between Sale Total and Total Cost

You can then use formulas in the spreadsheet to calculate the gain or loss for each transaction.

Here attached is an example of what the spreadsheet may look like