Why Buy a CoinTracker plan when TurboTax Imports and computes?

So I’m confused here. Why would you buy a Cointracker Tax Plan, when TurboTax will import and compute the tax basis in it’s software?

What am I missing? Do I get Tax Loss Harvesting, or some other type of benefit from using a dedicated Cointracker Plan?

1 Like

HIFO tracking of filled orders is a good enough reason for most of us.

An absolute must for high frequency bot trading platforms.

Small number of buys sells each year might not be a big deal for HIFO vs FIFO, not sure.

Also, Turbo Tax only takes so many lines to an 8949. Once over X number of transactions Turbo tax cant import, its around 1250 or 2500 from what i understood. Thats total transactions.

Hi freq traders log in the 10 of thousands to hundreds of thousands of trades annually.

CT is used to condense all coin trades to one line item for an 8949 Turbo tax import. Meaning you can trade SHIB 100,000 times and it will still only eat up 1 line item on your allowed 1250 total lines for turbo tax import to 8949. Meaning you can trade alot of diff coins during the year and theoretically not overload your line items import to turbo tax 8949.

Hope this helps! Also it helps you see your potential taxable gains throughout the year as they stand at that moment in time. Both short term and long term. Planning or paying estimated taxes is a must if ginna be in the green and short term trading high frequency during the year — otherwise penalties for underpayment are lousy.

Ask me how i know about these fun problems :stuck_out_tongue_winking_eye:

Lol i just read alot :sweat_smile: