Privacy-focused, free, open-source cryptocurrency US tax calculator: it handles multiple coins/exchanges and computes long/short-term capital gains, cost bases, in/out lot relationships, and account balances.It generates form 8949 and full tax report.Project description RP2 v0.7.2 Table of Contents – [Introduction] – [License] – [Download] – [Installation] – [Running] – [Input and Output Files] – [Reporting Bugs] – – [Developer Documentation] – [Frequently Asked Questions] – Introduction RP2 is a privacy-focused, free, open-source cryptocurrency tax calculator.Preparing crypto taxes can be a daunting and error-prone task, especially if multiple transactions, coins, exchanges and wallets are involved.
This problem could be delegated to a crypto tax preparation service, but many crypto users value their privacy and prefer not to send their transaction information to third parties unnecessarily.
Additionally, many of these services cost money.RP2 solves all of these problems: – it manages the complexity related to coin flows and tax calculation and it generates forms tax that accountants can understand, even if they are not cryptocurrency experts (e.g.
form 8949); – it prioritizes user privacy by storing crypto transactions and tax results on the user’s computer and not sending them anywhere else; – it’s free and open-source.RP2 reads in a user-prepared spreadsheet containing crypto transactions.It then uses high-precision math to calculate long/short term capital gains, cost bases, balances, average price, in/out lot relationships and fractions, and finally it generates output spreadsheets.
It supports the FIFO accounting method.It has a programmable plugin architecture for output generators : builtin plugins are US-specific (one for form 8949 and another for a full tax report), but the architecture makes it possible to contribute additional output generators for different countries or for different US-based cases.RP2 has extensive unit test coverage to reduce the risk of regression.The author of RP2 is not a tax professional, but has used RP2 personally for a few years.IMPORTANT DISCLAIMER: RP2 offers no guarantee of correctness (read the license ): always verify results with the help of a tax professional.
How RP2 Operates RP2 treats virtual currency as property for tax purposes, as per IRS Virtual Currency Guidance .RP2 uses the FIFO accounting method (lots acquired first are disposed of first): however, in and out lots typically don’t have matching amounts, so RP2 fractions them as needed and computes the resulting cost bases and capital gains for each lot fraction.RP2 groups lot fractions into the following taxable event categories, each of which has a unique tax treatment: – EARN: specifically, interest from lending, wages, [mining] , [staking] , [airdrops] and [hard forks] .These are treated as ordinary income.Note that buying cryptocurrency is not a taxable event; – SELL: specifically, sale and [exchange of one cryptocurrency for another] .RP2 splits them in two subcategories:long-term capital gains, if the lot was held for more than 1 year, orshort-term capital gains otherwise; – DONATE: donations to charitable organizations.
These are tax-deductible; – GIFT: gifts to parties who are not charitable organizations are not tax-deductible.They are not taxable if they are below a certain threshold, but they are taxable if above the threshold.- MOVE: the fee for moving currency between two accounts controlled by the same owner; these may not be taxable or tax deductible but they still affect the FIFO order so they are tracked.
For each of these categories RP2 generates an output spreadsheet with transaction details and computed gains.You can give this output to your tax professional with the rest of your tax documentation.NOTE ON NFTs: RP2 treats NFTs as a kind of cryptocurrency (that is as property).License RP2 is released under the terms of Apache License Version 2.0.
For more information see LICENSE or http://www.apache.org/licenses/LICENSE-2.0 .Download The latest version of RP2 can be downloaded at: https://pypi.org/project/rp2/ Installation RP2 has been tested on Ubuntu Linux, macOS and Windows 10 but it should work on all systems that have Python version 3.7.0 or greater.
Installation on Ubuntu Linux Open a terminal window and enter the following commands: sudo apt-get update sudo apt-get install make python3 python3-pip Then install RP2 Python package requirements: pip install rp2 Installation on macOS First make sure Homebrew is installed, then open a terminal window and enter the following commands: brew update brew install python3 Finally install RP2 Python package requirements: pip install rp2 Installation on Windows 10 First make sure Python 3.7 or greater is installed (in the Python installer window be sure to click on “Add Python to PATH”), then open a PowerShell window and enter the following: pip install rp2 Installation on Other Unix-like Systems – install python 3.7 or greater – install pip3 pip install rp2 Running Before running RP2 two files must be prepared by the user: – an ODS-format spreadsheet, containing crypto transactions (ODS-format files can be opened and edited with [LibreOffice] , Microsoft Excel and many other spreadsheet applications); – a JSON config file, describing the format of the spreadsheet file: what value each column corresponds to (e.g.timestamp, amount, exchange, fee, etc.) and which cryptocurrencies and exchanges to expect.
The formats of these files are described in detail in the Input Files section of the documentation.Examples of an input spreadsheet and its respective config file: – [input/crypto_example.ods] – [config/crypto_example.config] (if desired, this config file can be used as boilerplate).After reading the input files, RP2 generates output files based on the transaction information therein.The output files contain information on long/short capital gains, cost bases, balances, average price, in/out lot relationships and fractions.
They are described in detail in the Output Files section of the documentation.The next sections contain platform-specific information on how to run RP2 on different systems.Running on Linux, macOS and Other Unix-like Systems Download crypto_example.ods and crypto_example.config .Let’s call the location of the downloaded files.To generate output for the example files open a terminal window and enter the following commands: cd rp2 -o output -p crypto_example_ crypto_example.config crypto_example.ods Results are generated in the output directory and logs are stored in the log directory.To print command usage information for the rp2 command: rp2 –help Running on Windows 10 Download crypto_example.ods and crypto_example.config .
Let’s call the location of the downloaded files.To generate output for the example files open a PowerShell window and enter the following commands: cd rp2 -o output -p crypto_example_ crypto_example.config crypto_example.ods Results are generated in the output directory and logs are stored in the log directory.To print command usage information for the rp2 command: rp2 –help Input and Output Files Read the input files and output files documentation.
Reporting Bugs Read the Contributing document.Contributing Read the https://github.com/eprbell/rp2/tree/main/CONTRIBUTING.md document.Developer Documentation Read the developer documentation .
Frequently Asked Questions Read the user FAQ list and the developer FAQ list .Change Log Read the Change Log document.RP2 Change Log v0.7.2 – Minor fixes related to Pypi package distribution and upload v0.7.1 – Minor fixes related to Pypi package distribution and upload v0.7.0 – First version uploaded to Pypi – Added pre-commit hooks – Added bandit security checks – Major revision of user and developer documentation – Fixed lint errors – Various bug fixes and improvements v0.6.0 – First version tracked in change log – Added Python packaging support – Switched to high-precision math (decimal.Decimal) – Finished documentation (except FAQs) – Added bumpversion – Various bug fixes and improvements Project details Download files Download the file for your platform.If you’re not sure which to choose, learn more about installing packages .
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