Still wondering how you should file your taxes for all your cryptocurrency investments? Have no Fear — BearTax is here!
Our BearTax review will be able to provide you a clear breakdown of how the BearTax platform works and if you should consider using it for your tax returns this year.
Background and Company Information
Table of Contents
- Background and Company Information
- What is BearTax?
- How Does it Work?
- BearTax Benefits & Features
- Connecting To All of Your Exchanges Instantly
- An Algorithm Made To Help You Save on Taxes
- Global Access To BearTax
- Connect with CPA & Audit Helper
- How to Use BearTax?
- As An Accountant
- As A Trader & Investor
- BearTax Cost & Fees
- Unlimited Exchange Imports For Free
- No Paywalls Across Different Pricing Categories
- Accountants and Accounting Firm Incentives
- Alternatives: What Makes BearTax Different?
- Coin Tracker
- Pros and Cons
- The Real Review: BearTax Review
BearTax was founded by Vamshi Vangapally, Hiteshwar Vadlamudi, and Pradyumna Doddala back in January 2018. These three came up with the idea of BearTax after seeing the problems of trying out other cryptocurrency tax tools to manage their portfolio gains and loss.
They couldn’t find anything on the market that could be used by accountants and normal users alike, so BearTax was created to bridge those two worlds together.
What is BearTax?
BearTax allows it’s users to create tax documents needed for cryptocurrency traders and investors by integrating high-end technology and analytics with your exchange account to capture the entire historical data for all of your trades and provide an accurate account of your gains and losses throughout that tax period.
How Does it Work?
The software works by connecting with your exchanges through API keys and building out the entirety of your tax documents instantly without needing much management on your part.
- No Paywalls To Get Access To Complete Documents
- Fairly Priced Across The Market
- Easy to Use and Company explains themselves well
- Adding a Performance Tracker to keep track of taxes throughout the year would be a great addon
BearTax Benefits & Features
Connecting To All of Your Exchanges Instantly
You are able to connect all the exchanges that you are a part of with BearTax and it will allow you to manage each of these representations in an easy and concise manner so that way there is no confusion.
An Algorithm Made To Help You Save on Taxes
Their Smart Matching Algorithms goes into connecting the dots all across your exchanges and helping you to avoid taxable events showing up as such.
Their algorithm is able to do this by setting up the smart matching to examine your entirety of trades. Once it does this, it will correctly place them into the sections that provide the most advantage for yourself and showcase the best possible setup for your taxes.
Global Access To BearTax
With BearTax you can actually use this all across the world to do your taxes. From the very onset when you start the application, you can choose from the listed countries of the USA, United Kingdom, Australia, or India as options.
Then, the software will automatically present the financial information in your country’s currency and the correct tax period to your area.
Connect with CPA & Audit Helper
If you’re still a bit lost on how exactly your taxes need to be set up, then BearTax will connect you with one of their trained CPAs to work with you in explaining your tax situation and the best set up for your taxes.
Not only with this, but they also have a tailored Auditing system that will be able to be connected to your past taxes from prior and be able to accurately connect throughout your timeline as a trader.
How to Use BearTax?
As An Accountant
A CPA will find benefits in using BearTax because it is allowed to provide a hand-off solution for accountants to get their clients to create an account on the BearTax platform and do all of the importing and processing when it comes to their exchanges. Once that has been completed, the handoff is then provided to the accountant to finish to tax process for their client.
This streamlined approach helps to keep track of all your clients and where they are in the processing of their cryptocurrency tax forms.
No need to ask for your clients credentials in all of this and can protect their privacy while you are able to manage their taxes all on the platform. With such an easy and simple app, you won’t need to spend hours mulling over each client’s forms, but be able to get on with the rest of your day.
As A Trader & Investor
This is a four step process with BearTax that only involves:
- Importing and consolidating your trades from all your associated exchanges into BearTax
- Reviewing your trades for discrepancies and classifying what is and isn’t income
- Ensuring the right gain-loss was used in the process of the information
- Download and file your tax documents completely and easily!
BearTax Cost & Fees
BearTax has a cost structure that would be very competitive in what you would typically see in the marketplace of cryptocurrency tax software. With a Basic plan that starts at $10/year upwards to their more premium Professional plan that is set up at $200/year.
There are a few more additional exceptions to their pricing structure that sets them apart from many others in the market. For example, they also provide multi-year pricing for their service and if you decide to purchase for 2 years, then you will receive a cost-benefit of 25% off.
Unlimited Exchange Imports For Free
BearTax ensures that you can import as many exchanges that you are connected to without needing to pay additional charges for connecting their APIs to their backend.
No Paywalls Across Different Pricing Categories
The company also mentions that they won’t hide any forms from you through a paywall either. Other competitors have a practice where they may only give you certain forms necessary for filing, but other more valuable insights are packaged at a higher-priced package. They do this to get you to want to buy the more expensive product — even if it’s not the one you actually need.
Accountants and Accounting Firm Incentives
If you have multiple clients that need to get their cryptocurrency taxes in order then you are quite in luck. BearTax will actually provide you free usage of the product for your first 3 clients that you bring on-board. Their price package is detailed more extensively here (Only For CPAs).
Alternatives: What Makes BearTax Different?
One of the most professional crypto tax software out there, ZenLedger provides you a great experience in managing your taxes and cryptocurrency investments in one place.
ZenLedger provides high-end features and functionality when it comes to handling your taxes and has been used by very bright technologists in the industry.
If you are at odds with your decision, be sure to give ZenLedger a check on their website.
A very good competitor to BearTax, they show a lot of promise when it comes to helping their customers do their cryptocurrency taxes without any of the paywalls that are commonly seen in that part of the industry.
BearTax does have a lot more to provide than CryptoTrader.Tax when it comes to assistance from other CPAs and a tailored solution for Accounting Firms.
Consider these two points if you are comparing the products.
With great power comes great responsibility and CoinTracker has the power to let you manage your tax reports and your entire crypto portfolio all in one platform.
They have been touted to provide an awesome 30-day money-back guarantee if their services do not get you the tax savings that you need.
Find out more about how CoinTracker can help you with your cryptocurrency tax management below.
Pros and Cons
No Paywalls To Get Access To Complete Documents
Fairly Priced Across The Market
Easy to Use and Company explains themselves well
Adding a Performance Tracker to keep track of taxes throughout the year would be a great addon
The Real Review: BearTax Review
If you’re looking for an amazing tax software for your cryptocurrency trading, then BearTax will definitely be a great option to consider.
With an incredibly robust piece of software created by highly technical founders, they’ve built a tool that will provide you answers to all of your cryptocurrency tax questions.
If you are someone who does High Volume Trading with Bots, then this software is something that can give you all the necessary information to properly showcase your trading to your countries tax service.
If you are someone who is starting out in their journey and need software to build a long term relationship with while doing your taxes then BearTax will be able to work for you on that premise too.
If you are a financial expert that is managing multiple clients and need a platform that will streamline creating these tax documents for you then BearTax does exactly that.
BearTax does a lot of hand-holding and that is a good thing especially since this current tax landscape is being built out more and more each day. If you’re interested in learning more about BearTax, give their website a look!