The DeFi Tax Benchmark provides a taxpayer with the means to satisfy the accuracy requirements of the tax law; to exercise reasonable care and due diligence. This service is intended for active investors and Degen traders using decentralized exchanges.
If your trading on decentralized exchanges was only swapping or just a few more sophisticated trades, then you probably don’t need this service to estimate your results.
Scope of Offering: CryptoTaxAudit (hereafter We, Us, or Our) uses the crypto gain calculation services (GAIN SERVICES) listed below to analyze your blockchain addresses. We will then send you a report summarizing the results of each service for each blockchain. Currently we are only providing results for 2021 trading.
Supported Blockchains: The following blockchains are currently supported by this offering. Additional blockchains require prior approval. Not all GAIN SERVICES support all blockchains. We are actively monitoring the explosion in new DeFi blockchains.
Our Responsibilities: CryptoTaxAudit’s responsibilities consist of:
- After the offer is purchased, we will send you a secure form for you to submit all of your DeFi addresses to be analyzed.
- Protect your data on a secure, encrypted file system offered by Citrix ShareFile.
- Prepare a report summarizing the income and gain results from the GAIN SERVICES for each set of blockchain addresses.
- Deliver to the customer a secure link to the DeFi Tax Benchmark report.
- Provide the opportunity for a phone consultation to discuss how to understand your results. (Available for an additional fee)
Your Responsibilities: You must:
- Thoroughly complete the secure form with your DeFi addresses. Only submit addresses that contain DeFi transactions to avoid double counting.
- Acknowledge that the GAIN SERVICES results are only those derived from the blockchain addresses alone. The GAIN SERVICES are actively improving these applications, so subsequent analysis of the same address may yield different results.
Note: Re-running results to include additional addresses could result in additional labor charges.
Deliverables: The report will be in a pdf file delivered as a link to our secure file system unless you request it to be sent as an email attachment. The report will provide a description of how to interpret the results and enter them into your tax return. It will provide the results for each type of blockchain address. You will also receive a link to discuss the results with one of our crypto analysts (Available for an additional fee).
Completion Criteria: Our services are complete when we have emailed you the link to your report.
Estimated Schedule: Our target is to complete your report 14 days after submission of the form with your DeFi addresses. Tax season can create a tremendous demand for our services which could cause us to take longer. We will notify you in case of any delay beyond 14 days.
Payment: The DeFi Tax Benchmark costs $5,400 which includes ten hours of analyst time, which typically is enough time for processing addresses for a single blockchain. Additional labor is charged at $120 per hour. If there are more than 5,000 transactions, an additional payment of $1,500 is required to pay for additional GAIN SERVICE licenses. Additional fees must be paid prior to the report being delivered.
Frequently Asked Questions
If the following FAQ doesn’t answer your questions, please email us at: [email protected]