As a crypto trader or miner, it’s essential that you track your gains and losses to prevent mistakes and penalties from accruing. By choosing the appropriate crypto tax software you can stay on track with your gains and losses and stay within regulatory requirements.
A good crypto tax software should automatically import transaction data from exchanges and wallets, calculate capital gains over a given time period and support your country’s specific tax framework by providing fillable forms.
Koinly
Koinly is one of the premier cryptocurrency tax software tools on the market, boasting an array of features for users in 20+ countries. It can automatically import data using APIs linked to exchange accounts and wallets, then verifying it against its accuracy – providing extensive support for cryptocurrency activities like margin trading. Furthermore, its extensive support for exchanges and wallets as well as advanced cryptocurrency activities like margin trading sets it apart from its primary competitors. Koinly’s reports can include capital gains summaries, end-of-year balances summaries asset summaries income transactions or even filing IRS Form 8949 and Schedule D on behalf of US taxpayers!
This software has been created by crypto experts with support from tax professionals to ensure it always stays up to date with crypto regulations. While free to use, paid plans start at $49 annually to unlock features not available to free users such as custom transaction imports and tax report formats.
CoinTracking
CoinTracking platform is an advanced crypto tax software, making it simple and straightforward to capture, analyze and report cryptocurrency trading activity. Specifically tailored for most countries’ tax laws and offering comprehensive data encryption with two-factor authentication for added protection – providing limited access to your account by only those authorized.
The app features several useful features, including closing position reports and tax-related reports for mining and spending activities. Furthermore, the application supports various tax methods – FIFO, LIFO, HIFO, AVCO, ACB among them – making it compatible with major exchanges and wallets, including Trezor and Ledger Nano S hardware wallets.
CoinTracking also generates IRS Form 8949 for cryptocurrency gains and losses reporting, which can then be exported directly into TaxACT or TurboTax for filing purposes. Please be aware that its free package limits CSV imports as well as automatic exchange and blockchain imports; pro plans unlock these features.
CoinLedger
Koinly is an easy and accessible crypto tax accounting solution, featuring features such as portfolio tracking and crypto tax reporting for the United States, Australia and Canada as well as providing forms for other countries. Support for both FIFO and LIFO cost basis calculation methods as well as transactions from major exchanges and wallets can be imported directly into Koinly while DeFi and NFT exchanges are supported for calculation of gains/losses related to transactions is also included in its services.
CoinLedger offers both a free trial period and money-back guarantee. Its price is reasonable and its user interface easy. Furthermore, its customer support is professional and responsive. Furthermore, users have access to various cost accounting methods that make calculating tax liabilities simpler.
This web-based software makes filing crypto taxes simpler than ever. It connects with multiple exchanges and wallets, classifying transactions accurately, providing accurate reports, as well as tools to save on taxes such as tax loss harvesting.
TokenTax
TokenTax stands out from its rivals as one of the premier crypto tax software programs on offer, thanks to its user-friendly interface and on-call support services. Furthermore, educational materials including DeFi and NFT tax guides are included with its use. Although it offers less native exchange integrations than its rivals do, TokenTax’s VIP plan enables import of up to 30,000 crypto transactions annually as well as IRS audit assistance – an attractive proposition indeed!
TokenTax provides three pricing tiers to meet different users’ needs and offers a professional suite to benefit crypto accountants and accounting firms. It utilizes a tax minimization algorithm to determine your liabilities, import trading data from crypto exchanges and wallets automatically and generate all forms necessary for filing taxes such as 8949 TurboTax FBAR forms for filing tax returns more efficiently – and could save money by reducing capital gains liability!
