What is Recap?
Recap is a privacy-focused crypto tax software designed specifically for United States investors. It assists users in navigating cryptocurrency tax obligations with ease, ensuring compliance with IRS regulations while optimizing tax solutions. The platform allows users to save time and streamline their tax reporting process.
What are the main features of Recap?
-
Privacy-Centric Approach: Your data remains secure without compromise.
-
Comprehensive Crypto Portfolio Tracker: Track your entire crypto portfolio in one convenient location.
-
Automated Tax Reporting: Import your trading history to automatically calculate capital gains and income taxes.
-
Integration Support: Compatible with major exchanges like Coinbase, Kraken, and Binance.
-
IRS Compliance: Generates necessary IRS forms such as FORM 1040 and FORM 8949.
-
Guides and Resources: Access to US-focused crypto tax guides to help understand tax obligations.
How to use Recap?
Using Recap to calculate your crypto taxes is straightforward:
-
Import Your Data: Sync transactions through a real-time API or import CSV files to gather your trading history.
-
Automated Calculations: Recap processes your data to give a comprehensive calculation of capital gains and income tax.
-
Generate Reports: Effortlessly create tax reports for filing, enabling easy sharing with accountants when needed.
What is the price of Recap?
Recap offers a free trial for users to explore the software without credit card requirements. To generate detailed tax reports, pricing starts from $78, which provides cost-effective solutions for managing crypto tax reports.
Helpful Tips for Using Recap
-
Keep Records: Maintain detailed records of all your cryptocurrency transactions for easier importation.
-
Maximize Free Trial: Use the free trial to understand the software’s capabilities and how it can save you time.
-
Stay Updated: Regularly check IRS guidelines for any updates that may affect your tax obligations.
-
Consult a Professional: Consider consulting a tax professional for personalized advice and to optimize your tax strategy.
Frequently Asked Questions
How is cryptocurrency taxed in the US?
Most crypto gains are subject to Capital Gains Tax, while some may fall under Income Tax depending on the transaction.
What is capital gains tax?
Capital gains tax applies to the profit made from the disposal of assets, including selling or trading cryptocurrencies.
When do I need to pay crypto tax in the US?
Typically, the tax filing deadline is April 15, subject to changes based on weekends and holidays.
Why do I need a crypto tax calculator?
While manual calculations are possible, a crypto tax calculator such as Recap enhances efficiency and accuracy.
Can I reduce how much crypto tax I owe?
Using intelligent tax strategies can help optimize capital gains allowances—consult a tax advisor for tailored advice.
How much tax is payable on crypto gains?
Capital gains on crypto are taxed at either 10% (basic rate) or 20% (higher rate), based on your annual income and current tax brackets. For detailed rates, refer to the latest US tax guide.