Crypto tax software works by importing all your cryptocurrency transactions and then calculating gains or losses to provide an easy report that’s ready to file with your taxes.
Some platforms like Koinly are free and provide basic service, while others charge annual subscriptions to access features such as tax loss harvesting or priority support. Furthermore, some also enable you to connect multiple exchanges and wallets so data aggregation is simplified.
CryptoTaxCalculator
Finding a suitable crypto tax calculator requires careful consideration. Ideally, software should be capable of retrieving data from multiple exchanges and tracking transactions with ease, supporting various crypto assets and Decentralized Finance (DeFi) protocols as well as offering native integrations and an easy reconciliation process for clients – not forgetting a free trial period and money back guarantee – giving users peace of mind during this important financial decision.
Users should be able to optimize their cost basis method by tracking individual transaction details and aggregating them into one report, thus helping them save thousands in taxes via tax loss harvesting strategies such as loss harvesting.
Finally, an ideal DeFi solution should provide seamless integration with Xero for easier reporting, making the reporting process simpler for businesses needing to file tax returns. In addition, upload Manual Journals quickly into Xero for reconciliation as well as track mining/staking activities in DeFi.
ZenLedger
ZenLedger is an advanced cryptocurrency tax software designed to make reporting cryptocurrency taxes simple. With its centralized accounting feature and ability to import crypto transactions from exchanges and wallets into one location, this comprehensive tax solution provides comprehensive reports to analyze your crypto tax situation.
The program is user-friendly for anyone new to cryptocurrency, offering a free account that lets users review up to 25 transactions at any given time. In addition, an optional Starter plan costs $49 and adds additional features such as tax loss harvesting and DeFi integration.
ZenLedger provides premium customer support through email and live chat, with knowledgeable and responsive representatives that are available around the clock. Their service is particularly beneficial to those unfamiliar with crypto tax reporting – the team can answer your queries, help prevent costly errors, and even connect you with qualified tax professionals if needed.
