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BearTax Review

The cryptocurrency market is an area where a lot of people end up finding themselves in a bit of trouble with their taxes. Some people assume that they do not need to worry about taxes at all once they have entered the cryptocurrency ecosystem; however, that is not at all the case. Various tax agencies around the world are definitely tracking the crypto space to make sure that everyone is paying their taxes on potential profits that are being made in this new, emerging market.

This is where crypto tax reporting tools like BearTax come into the picture. BearTax (Or Bear.Tax as its known) removes all of the possible complexity involved with tracking all of your past cryptocurrency trades and automatically generates tax reports based on integrations with various crypto exchange APIs.

BearTax is one of the most affordable crypto tax apps on the market, and many crypto users who don’t make many trades throughout the year may find that this is the perfect solution for all of their crypto tax reporting needs.

BearTax Overview

BearTax Logo

BearTax

Countries Available: Australia, Canada, India, United States
Exchanges Supported: 50+

BearTak Pros & Cons

Pros

  • Cheap crypto tax solution available at $10 per year

  • Get help from an accounting professional for only $200 per year

  • Tools for accountants handling taxes for their clients

  • Integrates with traditional tax reporting software

  • Get a discount for purchasing two years of crypto tax assistance at a time

Cons

  • Currently only available for tax reporting in Australia, Canada, India, and the United States

  • No support for advanced crypto use cases like margin trading and decentralized finance (DeFi)

  • Does not also operate as a crypto portfolio tracker

How Does BearTax Work?

BearTax is crypto tax accounting software that can be useful for either an individual or a professional account whose clients are buying and selling crypto assets on a regular basis. This software has been simplified into a simple, three-step process that involves the user importing their trade data via an API key or CSV file, reviewing all of the data that has been added to the platform, and then allowing the user to download tax documents that can be imported into traditional tax reporting software like TurboTax.

There is no paywall for trying out the various crypto tax tools offered by BearTax, and you only have to pay when you decide to generate a full report that can be added to your annual tax filing. All users are able to gain access to live chat support if they run into any technical trouble, and Professional accounts are able to connect with certified accountants in order to gain additional assistance with their crypto taxes.

Best Features

The best feature of BearTax has to be its pricing. The cheapest offering from the crypto tax platform comes in at $10 per year, which is basically unheard of in this industry. While this entry-level account only allows for the importation of 20 transactions per year, the reality is some people who are not trading on a daily basis will find this unique offering to be the perfect solution for their needs. BearTax’s excellent pricing structure is also beneficial to professional traders, as the Professional account tier comes in at $200 per year and includes unlimited transactions and assistance from an actual accountant.

Another great feature of BearTax is the seamless integration with traditional tax reporting software. If you’re someone who is used to filing your own taxes via apps like TurboTax, then you’ll have no problem using BearTax to handle all of your crypto-related tax obligations. All you have to do is sign-up for a paid account with BearTax, import all of your trading data from exchanges, and then click a button to download a full tax report that can be added directly to whatever software you use to report your taxes every year. Nothing about the rest of your tax reporting routine has to change when you use BearTax for handling your cryptocurrency capital gains taxes.

A final feature of BearTax worth pointing out is that this platform also has a separate section of the platform for accountants who wish to handle crypto taxation on behalf of their clients. In fact, there is no fee for handling the crypto taxes of the first three of an accountant’s clients via BearTax.

Accountants are even able to respect the privacy of their clients, which is a major selling point in the cryptocurrency space, by asking them to import their own trading data from their exchange accounts. The accountant is then able to simply download the data that is imported by the client and compiled by the software.

Is BearTax Good for Beginners?

BearTax can definitely be a good option for someone who is new to the cryptocurrency space and needs to get a handle on the taxes they may owe on their crypto trades. Those who are mostly just buying and holding bitcoin or a relatively small number of different crypto assets will find that the Basic account offered by BearTax is the perfect solution. This account type allows the user to automatically import their trades from their cryptocurrency exchange accounts for an extremely reasonable price of $10 per year. While the number of transactions supported by this account tier is rather limited, the reality is that most beginners aren’t making a lot of trades on a regular basis.

That said, beginners who are trading rather frequently will need to pay quite a bit more than $10 per year for BearTax to take care of their crypto tax requirements. Anyone who is both new to crypto and making a lot of trades may also find value in BearTax though, as newcomers can get assistance from an actual accountant and import a limitless number of trades from their crypto exchange accounts if they pay the $199 yearly fee for a Professional BearTax account. This is one of the best options on the market if you are a cryptocurrency beginner and have become overwhelmed by the potential taxes that have resulted from crypto usage over the past year.

What’s the Sign-Up Process?

BearTax makes it as easy as possible to sign-up for their platform, allowing users to gain access to many features before being prompted to make a payment. To get started with this crypto tax reporting app, you will first need to head over to the BearTax homepage and click the “Try now for free” button found in the top-right corner of the website. On the next page, you will just need to input your email address and create a password, and that’s basically it. After you have generated a new account, you will be able to sync your exchange accounts with your TaxBear account to see exactly how much in tax you are going to need to pay on your crypto activities this year.

How Much is BearTax?

Like many other crypto tax software solutions, BearTax works on a tiered account system where you gain access to more features if you’re willing to pay more for the software on a yearly basis. There are four different account types to choose from with BearTax, and you can also try out the software for free and see how much you will owe in taxes before signing up for one of these paid accounts. Compared to other crypto tax reporting software options, BearTax’s pricing is pretty cheap, especially when it comes to the Basic and Professional accounts. It should also be noted that users are able to get a discount if they purchase two years of tax assistance rather than one.

Basic Account

The Basic account offered by BearTax is extremely bare bones, but it should be useful for those who are new to crypto or simply not making that many trades. With this account tier, BearTax users are able to import up to 20 crypto trades into their accounts from an unlimited number of exchanges. If you’re someone who doesn’t trade between cryptocurrencies very often, then this is one of the best crypto tax reporting subscriptions available to you. A Basic BearTax account costs $10 per year.

Intermediate Account

With an Intermediate account, you will be able to import up to 200 crypto trades per year, and you’ll also gain access to additional customer support via email. Although this subscription comes in at only $45 per year, you may be able to find similarly-priced options on other crypto tax accounting platforms that allow you to import more crypto transactions.

Expert Account

With an Expert account, the limit on crypto transactions that can be imported into BearTax per year is lifted up to 1,000. Additionally, email-based customer support is replaced with live chat support for a more instantaneous experience when seeking additional help. Another unique feature of the Expert account is that you can import trading data from multiple accounts at the same exchange. This functionality is not available with Basic or Intermediate accounts, and it can be useful if you’re using multiple accounts at the same exchange for any number of reasons. A BearTax Expert account costs $85 per year.

Professional Account

The most feature-complete option when creating a BearTax account is the Professional tier. With this account type, you get all of the features that are included in the aforementioned account tiers, in addition to the importation of an unlimited number of trades from your crypto exchange accounts. Live chat is upgraded to priority status for Professional users, which means they get to skip the line whenever they need a little bit of extra help. This customer support is also available on a 24 hours a day, 7 days a week basis for Professional customers.

Most importantly, a Professional account allows you to reach out to a professional accountant via BearTax in order to get assistance with specific questions or just to get a more-informed pair of eyes to look over a tax filing before it is sent to the tax collectors. While this sort of account can cost more than $500 per year elsewhere, BearTax charges only $200 for a Professional account.

What Countries are Supported?

The lack of support for a large number of different countries is a key issue with BearTax. As of 2020, the number of countries explicitly supported by BearTax could be counted on one hand, although they plan to add support for many other countries in the future. Here is the full list of countries supported by BearTax for now:

  • Australia
  • Canada
  • India
  • United States

Although there is not explicit support for a large number of countries on the BearTax platform, the software can still be used to generate estimates on how much you taxes you are going to owe on your crypto trades. That said, the real value of this sort of software is the automation that comes with it, so potential users outside of the four main supported countries may want to look at other options.

What Exchanges are Supported?

While the number of countries supported by BearTax is limited, the number of global crypto exchanges that can be linked to BearTax is not. There are more than 50 different crypto asset exchanges that can be seamlessly integrated into a BearTax account via API keys, and every other exchange can still be supported in a roundabout way via the importation of CSV files that can be generated from within an exchange account. Here are some of the major exchanges that are supported by BearTax with API connections:

  • Binance
  • Coinbase
  • Bittrex
  • Gemini
  • Poloniex
  • Gate.io
  • Bitfinex
  • Changelly
  • Huobi
  • HitBTC
  • KuCoin
  • OKEx
  • Bitstamp
  • Kraken
  • Abra
  • Circle
  • Uphold
  • Crypto.com
  • Cash App
  • Coinjar

Potential Dealbreakers

While it’s true that BearTax is a pretty attractive option for crypto tax accounting software due to their pricing structure, the reality is that there’s no such thing as a free lunch. You’re going to miss out on a few features that have become somewhat commonplace on other platforms if you choose BearTax as your crypto tax software solution, so here are some potential dealbreakers to keep in mind before you make your purchase.

The lack of extensive support in many different tax jurisdictions around the world is what will irk more potential users of BearTax than anything else. There are only a handful of countries that are fully supported by the BearTax crypto tax reporting app, which means the majority of people in the world will need to look somewhere else for assistance with their crypto taxes. If you aren’t paying your taxes in the Australia, Canada, the United States, or India, then you won’t be able to take advantage of BearTax’s low prices.

If you are someone who is lucky enough to live in the four countries supported by BearTax, then you should still know that this platform is not heavily integrated into the DeFi ecosystem. If you have been playing around with a number of different DeFi apps on Ethereum over the past year, then your tax situation may have become extremely complicated as a result of operating in this experimental area of crypto finance. You will be able to get additional help from a professional accountant if you decide to pay the $200 per year for a Professional account, but there are also other platforms out there that have started to add ways of syncing DeFi user activity into tax reporting services that could be much better solutions if you’re looking to handle your taxes on your own.

One final potential dealbreaker to point out with BearTax is that this software does not act as a crypto portfolio tracker throughout the rest of the year when you’re not worried about paying your taxes. If you’re looking to have a single interface for all of your portfolio tracking and tax reporting needs, then BearTax will not be the proper app for you to use.

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CryptoVantage Staff

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