RP - FinRev Tax Reporting & Preparation Guidelines

Disclaimer: Real Trading Research does not provide tax or financial advice. Please consult a tax professional for advice tailored to your circumstances.

Tax Reporting Tools

For tax reporting, you can connect your exchange to a crypto tax tool, (e.g. Koinly, Crypto Tax Calculator) and it will pull in your trade data and produce a report for your accountant at tax time.


Here are some of the preferred tools used by FinRev coaches & clients:


Koinly

  • If you wish to separate your FinRev activities from other cryptocurrency activities, we suggest using a dedicated Koinly account for your FinRev transactions (unless you're experienced in reviewing and managing multiple cryptocurrency assets/portfolios)
  • For centralised exchanges, connect your sub-account to Koinly rather than your main account

  • Enter manual transactions for your sub-account transfer from your main account. You can copy the timestamp and token directly from the exchange report - refer to Item 6 below.

    Note: Users have reported bugs when syncing both a main account and sub-account to Koinly, including duplicate reporting of transactions. If you spot errors in your data feeds, please reach out to Koinly.


Crypto Tax Calculator


For assistance with connecting specific exchanges and wallets to crypto tax tools, please read the documentation provided by the service provider and/or reach out to their Support team.


In addition, these tool providers (and many of the crypto exchanges) provide links for Crypto specific tax advisory services.


Here are some examples:

https://koinly.io/crypto-accountants/australia/

https://cryptotaxcalculator.io/pricing/accountant-bookkeeper/


We do not recommend any specific services, but we do recommend that you perform due diligence on each service before employing them.


FinRev Tax Preparation Guidelines

For entities with strict compliance requirements, such as SMSFs and IRA accounts, please ensure all your accounts have been opened in the name of the entity rather than your personal name.


Once accounts are set up in the correct names, members can run the following reports as part of their FinRev tax preparation, as required. Some items may only be required in your first FinRev reporting year (e.g. proof of purchase). Please check any specific requirements with your accountant or tax professional.



Item 1: Proof of Purchase: Financial Revolution software

  • Item 1a: Financial Revolution Platform and Services User agreement in the name of the entity

    • Contact us if you need a copy of your user agreement or need to update the name on the contract


  • Item 1b: Financial Revolution invoice from Real Trading Research

    • Contact us if you need a copy of your invoice or need your entity name added to the invoice


  • Item 1c: Proof of bank/credit card/crypto payment for Financial Revolution invoice
    • Contact us if you don't remember your payment method

Item 2: Evidence of trading capital transferred from bank account to Fiat exchange (if applicable)


Item 3: USDT or USDC purchased on Fiat Exchange


Item 4: USDT or USDC sent from Fiat exchange to FinRev-compatible exchange

  • Item 4a: End of Year statement from Fiat exchange, showing the 'Send Transaction History', including the wallet address of the destination Fin-Rev compatible exchange
  • Item 4b: Funding History statement from FinRev-compatible exchange
    • Example for Bybit users: https://www.bybit.com/user/assets/exportStatment
      • Select your Main account
      • Type: Deposit and Withdrawal History
      • Time: Customise with the date range of your tax period
      • Format: check 'Legal Name' to display the account name
      • This will create a csv file with the deposit history to your Main account. This should match the withdrawal in Item 5A, after fees.

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Item 5: Evidence of USDT or USDC transferred from main account to sub-account to separate perpetual futures trading activities (if applicable)

  • Example for Bybit users: https://www.bybit.com/user/assets/subAccountTransferRecord
    • Switch to your FinRev sub-account from your profile icon
    • Select the 12-month date range for your tax reporting period
    • Select: Search
    • Hover over your profile icon to display the sub-account name
    • Take a screenshot of the transfers including the sub-account name


  • Note: Hyperliquid API connections need to take place in the Main account, not a sub-account

Item 6: Closed P&L Report or List of Transactions from FinRev-connected exchange

  • Note: in most tax jurisdictions, only Realized Profits/Losses must be reported. Unrealized Profits/Losses can be excluded. Please check with your accountant or tax professional to check the rules in your tax jurisdiction.
  • Example for Bybit users: https://www.bybit.com/user/assets/exportStatment
    • Go to: Order History
    • Select your Sub-Account
    • Type: Unified Trading Account

    • Time: Customise with the date range of your tax period
    • Format: check 'Legal Name' to display the account name
    • This will create a csv file showing a list of all trades in your Closed (Realized) P&L
    • Note: if you receive more than one report, use the report with 'ClosedPL' in the title



Item 7 - Report showing the Market Value of your FinRev investment

  • Example for Bybit users: https://www.bybit.com/user/assets/exportStatment
    • Go to: Account Statement
    • Select your Sub-Account
    • Type: Custom Time
    • Enter the date representing the last day of your tax year - e.g. 30 June 2024
    • Export the Account Statement
    • Note: the Account Statement report will include the USDT value of the entire sub account as at the specified date, which includes unrealised positions. Unrealised profits/losses from open positions do not need to be reported at the end of the financial year (unless otherwise advised by your tax professional). These are not taxable events until the position is closed or settled.

Item 8 - Tax Reports from your Crypto Tax Tool (if applicable)

  • Ensure you have refreshed the sync between your crypto tax tool and your FinRev-connected exchange
  • Ensure you have included any deposits and/or withdrawals into your account/sub-account if deposits/withdrawals are not included in the synced data (e.g. for Koinly users, syncing your main exchange account and your sub-account is not recommended due to known syncing bugs, particularly for Bybit)
  • Download all available tax reports, as required by your tax professional



Label all your downloads with the corresponding 'Item' names above and share these reports with your tax professional. We suggest including a cover note with a list of all the item numbers and names for your tax professional.

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