Read this brief guide to discover all the new features and functions of our Portfolio Tracker - Fiscal Strategy.
Strategies to reduce or eliminate taxes
Maximize capital losses
This tool identifies the currencies with which it is possible to generate capital losses, and for each of them, it shows you:
The maximum capital loss obtainable from that currency, also indicating the amount to sell.
The capital loss obtainable by selling 100% of that currency, only if the entire sale would result in a loss.
The amount to sell can correspond to the total held or only a portion of it, with different effects on the obtainable capital losses.
Offest you capital gains
By pressing the Calculate Strategy button, the algorithm will generate a combination of currencies you could sell to reduce the actual capital gains you have already made during the current year, and, consequently, reduce the taxes you will have to pay (based on your country’s tax regulations).
If your crypto investments have generated capital gains, you may have to pay taxes on that profit.
However, if during the same fiscal period you also have tokens potentially in loss, you could realize the potential losses to reduce your tax burden.
Our algorithm helps you determine which tokens to sell to achieve this tax advantage and calculates how these sales would reduce your total capital gains.
Once the calculation is completed, the software will show you:
Suggested Capital Loss: The total sum of all the potential losses calculated.
New Potential Capital Gain: What your capital gain would be if you applied the suggested strategy.
In the following table, you will find information regarding the currencies and the amounts you should sell.
To summarize, CryptoBooks helps you understand which tokens to sell to generate losses that reduce your already realized gains, allowing you to achieve a tax benefit.
By clicking on Download a Report of this Strategy, you can also download a PDF summary of the calculated strategy.
Choose the tokens to sell for your tax strategy
If the tokens suggested by CryptoBooks don’t meet your preferences, you can select only the tokens you want to sell (among those with potential losses) and calculate a strategy customized to your needs and choices.
To get started, press the Choose assets button as shown in the image below.
You will see the following screen, which will allow you to select the tokens you wish to include in your tax strategy.
Select the tokens by checking the boxes, and then press the Calculate Tax Strategy button.
You will be shown the losses generated from selling the selected tokens, along with the impact on your new potential capital gain.
Once again, you can download the strategy report by pressing the corresponding button.
Asset sale simulator
This feature allows the user to simulate the sale of an asset from those owned and visualize the potential gain or loss that would result from this operation.
As shown in the image above, the fields to be selected are as follows:
Currency you want to sell: choose the currency from the dropdown menu among those in your portfolio
Selling price:
Use current market price
Enter sale price manually (simulate a sale upon reaching a desired price)
How much do you want to sell?:
Percentage (enter the percentage amount to sell)
Total (enter the total amount to sell)
After completing the information for each field, press the Calculate button.
Purchase Price: the total cost incurred to purchase this quantity of the currency
Potential Sale: the amount that will be generated from the simulated sale
Potential Result: indication of the profit or loss that would be generated by selling this quantity of the asset under these conditions