BitTax: Cold Storage Audit Tool (Desktop)

BitTax is a privacy-focused, local-first desktop application designed to audit cryptocurrency cold storage wallets for tax compliance and verification.

Warning

Public Repository Safety Notice: This is an open-source tool.

• Do NOT commit your real XPUBs or Private Keys to any file in this repository.
• The "Demo Profile" uses completely mock data.
• All processing happens locally on your machine. Your keys are never sent to any external server.

🚀 Features

🛡️ Local & Private

• Offline First: Designed to run without internet for maximum security.
• Non-Custodial: You retain full control. No generic "cloud account" required.
• XPUB Audit: Audits based on Extended Public Keys (XPUB), ensuring your Private Keys remain offline.

💰 Advanced Tax Logic

• Capital Gains: Automatically calculates Short/Long term gains.
• Cost Basis Methods:
  • FIFO (First In, First Out) - Default/IRS Standard.
  • LIFO (Last In, First Out).
  • HIFO (Highest In, First Out) - Best for tax minimization.
• Wash Sale Detection: Automatically flags and disallows losses if assets are repurchased within 30 days (IRS 30-day rule).

🛡️ Personal Audit Suite (New)

• Portfolio Dashboard: Real-time view of Net Worth, Unrealized Gains (ROI), and Asset Allocation.
• UTXO Manager (Coin Control):
  • Visualize: See every unspent chunk of Bitcoin you own.
  • Freeze: "Lock" specific UTXOs to prevent them from being spent (simulated privacy protection).
  • Label: Add notes to specific UTXOs (e.g., "KYC-Free", "Do Not Spend").
• Transaction Labeling: Annotate your history with persistent notes (e.g., "Gift", "Mining").

📊 Multi-Asset Support

• Bitcoin (BTC): Full UTXO audit support.
• Ethereum (ETH): Account-based model support.
• Privacy Detections:
  • CoinJoin/Mixers: Flags transactions with high anonymity sets.
  • Lightning Network: Detects potential off-chain channel opens.

📂 Reporting

• CSV Export: Generates bittax_audit_8949.csv formatted for IRS Form 8949 / Tax Software import.

🛠️Tech Stack

• Runtime: Electron (Windows/Mac/Linux)
• Frontend: HTML5, CSS3 (Vanilla), JavaScript
• Architecture: Local-First, Zero-Dependency Core Logic

� Installation & Usage

1. Run from Source

# Install dependencies
npm install

# Run Desktop App
npm run electron

2. Build Installer (Windows)

npm run dist

This will generate a .exe installer in the dist/ folder.

🗺️ Roadmap

✅ Completed Phases (v1.0 - v1.9)

• Core Audit: FIFO/LIFO/HIFO logic for Capital Gains.
• Privacy Engine: CoinJoin and Lightning Network detection.
• Desktop App: Local-first Electron wrapper.
• Exports: CSV generation for IRS Form 8949.
• Personal Suite: Portfolio Dashboard, UTXO Manager, and Labeling.

🚧 Next Horizons (v2.0+)

• Phase 10: Network Integration: Connect to Electrum Servers or Blockstream API for real-time history fetching.
• Phase 11: Encrypted Persistence: Save labels/UTXO state to an encrypted local database (SQLite).
• Phase 12: Spending Construction: Generate PSBTs (Partially Signed Bitcoin Transactions) using selected UTXO Logic.

🧪 Verification

The most effective way to verify the logic is using the Desktop App's Demo Mode:

1. Run npm run electron
2. Click "Running a test? Load Demo Profile" at the bottom.
3. Explore the Dashboard, Audit, and UTXO Manager tabs.
4. Verify calculations (FIFO/LIFO/HIFO), Wash Sales, and Privacy Flags against the provided Mock Data.

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Disclaimer: This software is for educational and informational purposes only. It does not constitute professional tax advice. Consult a CPA for your specific situation.