It’s that time of year again. No, not time to start making out your list for Santa. Time to do your taxes. As people scramble to gather their gains and losses for the year, they often forget that cryptocurrencies are now taxable. That means they need to be included on your taxes.
A great option for taking care of your crypto taxes is Bear.tax. With their intuitive and easy to navigate platform, you’ll have an easy time completing your cryptocurrency taxes. Plus, BearTax offers a live chat feature if you need help.
What else does BearTax have to offer? Let’s dig a little deeper into this solution with our BearTax review and find out for ourselves.
What is BearTax?
BearTax is a platform that gives you the means to calculate and file your cryptocurrency taxes. You can import all your digital transactions from several exchanges, calculate your gains, and then file your taxes in just a few simple steps when using BearTax.
The solution is marketed as an easy-to-use tax assistant for cryptocurrency traders and investors. Additionally, BearTax is great for both CPAs or individuals.
Of course, BearTax isn’t going to take care of your tax return in its entirety. What it will do, however, is provide a PDF file and auditable CSV for you that includes any capital gains and losses you incurred while trading cryptocurrency throughout the year. The solution is also integrated with TaxAct and TurboTax.
BearTax connects to the exchange (or exchanges) you use, pull the transactions, then create the PDF or CSV file for you after it performs its calculations. Then you can give the CSV or PDF to your accountant or submit it with your taxes if you do them yourself.
Who are BearTax?
Founded by Pradyumna Doddala and Vamshi Vagapally, BearTax chose to focus on promoting its brand organically rather than spend a lot of money on fancy marketing tactics. The owners chose to put their users first. Instead of pushing for mass market adoption, they focused on improving user experience and solving platform problems.
As a result, BearTax has a group of happy and loyal customers who have helped to make the platform what it is today. These customers provided feedback to the site by pointing out bugs and defects and recommending improvements.
Vangapally is a graduate of the IIIT in Bangalore. He has a Master’s in Technology, which he’s used as a UX consultant for various Fortune 500 companies throughout his career.
Doddala earned his Master’s degree in Computer Science from the University of Missouri-Kansas City. Prior to founding BearTax with Vangapally, Doddala founded the mobile development company Kronch and went on to hold the role of data scientist at a Fortune 500 company.
BearTax is headquartered and operated out of Atlanta USA and the team has specialized experience of the US market.
BearTax might be a tax solution, but it offers more than just a way to calculate your cryptocurrency gains and losses. Here are a few features you can expect to encounter when using the BearTax platform.
When it comes to taxes, the more accuracy you can provide for the governing authorities, the better. BearTax says its platform is more accurate than any other system available. It tracks your deposits, withdrawals, purchases, sales, and trades throughout the year and does so with precision. With BearTax, you don’t have to worry about whether or not their calculations are correct.
Using BearTax gives you a solution that provides end-to-end tracking. In the event you are audited, you’ll have all the information about gains and losses you need right at your fingertips.
Some platforms only offer one plan for all users. However, not all users have done the same amount of trading during the year. BearTax knows this and provides variety to its customers. Those who only need to import a few transactions can get a plan for as cheap as $0.99. Whether you only have a handful of crypto transactions or that’s what you do for a living, BearTax has a plan for you.
BearTax has a walkthrough which guides you through connecting your accounts from various exchanges and then uploading your transactions. While it may not sound like much, this is more than some platforms offer. Additionally, BearTax works with a wide range of exchanges, so you don’t have to worry about whether or not your favorite platform is supported.
If you choose BearTax you’re going to get an excellent experience with customer support. Where other platforms might request that you fill out a ticket and then wait for them to respond, BearTax offers its “Mr. Ted” chat assistant which offers immediate help. Users also have access to an FAQ page where they can find answers to common questions.
How Does BearTax Work?
BearTax is similar to other cryptocurrency accounting solutions. Users gather their transaction history from their crypto exchanges and import them into the BearTax platform. Then the platform calculates your crypto capital gains and losses. At that point, it creates a PDF tax form or CSV that you can include with your taxes. BearTax is also integrated with TurboTax and TaxAct as well.
One nice thing about BearTax is that it supports many exchanges. These include Coinbase, Gemini, Binance, Kraken, CoinSpot, and many others. The BearTax platform connects to these exchanges and imports the information right into their solution so you don’t have to mess with it.
Grant BearTax the permissions it needs to gather your account information, then it will automatically calculate your yearly gains or losses by matching up your deposits and withdrawals.
Now you’re ready to submit your crypto data on your taxes. Using BearTax is much easier than looking up how much you paid for every trade and calculating your profit and loss if or when you sold that digital asset. Let BearTax do all the heavy lifting for you.
You’ll get four subscription options with BearTax. You can select between the Dollar, Basic, Plus, and Ultimate plans. These plans are very competitive and you’ll be hard pressed to find a platform that offers a better plan for the cost. All plans offered on BearTax include unlimited exchange connectivity and live chat support.
The Dollar option is currently $0.99. It’s perfect for those who only trade cryptocurrency every once in a while. If you only perform a handful of trades during the year, this is a solid choice since it’s limited to 20 transactions.
The next plan up from the Dollar plan is the Basic plan. You’ll pay $29.99 for this plan, which offers up to 200 transactions. If you don’t trade a lot, but more than a few times a month, this might be the best option for you.
If you’re an avid trader, then you should consider the Plus plan offered by BearTax. It’ll cost you $59.99, however, it will process as many as 999 transactions.
The Ultimate plan is ideal for those who do a heavy amount of trading. If you use bots to place many of your orders, the Ultimate plan is for you. It costs $199.99 and includes unlimited transactions.
Pros and Cons of BearTax
- No paywalls which ask for payment upfront for support and processing
- Works in Canada, US, and Australia. Planning to expand to India, Japan, and other South-Asian countries
- Live chat support for all plans
- Interactive review section for users to view the right source as well as the needed information to associate price accordingly
- Preview your profit and loss before paying
- Aggregated gain/loss CSV file for Turbotax
- Generates tax form 8949 for easy integration into tax software
- Only handles basic trades and cannot process derivatives or margin trades
- Does not offer a portfolio tracker as some other tax platforms provide (this might be a little nitpicky since BearTax is a tax platform and not a tracking site)
Doing taxes isn’t fun and now you have to include cryptocurrency as part of your reporting. Thankfully, there is a solution like BearTax to make this a much less painful experience. The platform connects to the exchange you’ve used and gathers the information it needs to create the documentation you require for your taxes. It’s that simple.
Crypto is a nascent industry where adoption is still an area of great need. BearTax is trying to do its part to educate those in the industry about taxation, accounting, and how these two areas work together. The platform wants to make sure everyone has access to the information they need, which is why they provide chat support to anyone, no matter which plan they select.
BearTax offers plenty of plan options. Whether you’re new to crypto or a professional trader, you’ll find something that works for your needs. Additionally, the platform makes things easy on everyone by supporting a wide variety of cryptocurrency exchanges.
For our part, we really like BearTax. It’s easy to use, intuitive and does all the hard tax work for us. The platform focuses on customer experience and service and it shows. When it comes time to do our crypto taxes, BearTax is at the top of the list.