As a crypto trader or investor, it’s imperative that you use top-of-the-line tax software in order to remain compliant with local and global laws. Such programs automatically sync across exchanges and wallets while calculating capital gains and losses as well as providing final tax reports.
A great crypto tax software will also assist with tracking DeFi and NFTs, and should support multiple exchanges and wallets.
Koinly
Koinly is a cryptocurrency tax software designed to assist users with tracking and calculating their cryptocurrency gains. Additionally, this service offers general and country-specific tax reports as well as flexible pricing plans which depend on how many transactions a user makes over an annual period.
Users can import data via API keys or CSV files and Koinly automatically rectifies any discrepancies. It also recognizes and calculates needed information from activities like staking, mining, lending and more. Furthermore, its Newbie plan offers users up to 100 transactions for free storage; perfect for beginners tracking their crypto portfolio.
Once it’s connected to all your wallets, exchanges, and services, Koinly can automatically process your data. It will fetch market prices, match transfers between wallets in your own account, calculate capital gains using whatever cost basis method (FIFO, LIFO or ACB) is chosen by you, calculate capital gains using that method and generate tax documents like Form 8949 and Schedule D for filing with IRS return.
CoinLedger
CoinLedger is a cryptocurrency tax filing software designed to make calculating tax liabilities as straightforward and effortless as possible for users. The app imports transaction data from exchanges, wallets and CSV files before classifying each one according to its tax treatment before producing reports that can be used when filing taxes in the US and other countries. Furthermore, CoinLedger also provides free portfolio tracking capabilities as well as educational articles, videos and eBooks regarding crypto tools and taxes.
CoinLedger integrates with most popular exchanges and wallets, enabling you to import transactions easily. However, not all services are compatible so some information may need to be manually input. Likewise, this service allows you to edit transactions if it has mislabeled them; paid plans start from $49 annually up to $299 depending on the volume of transactions imported per year.
TokenTax
TokenTax is an industry-leading crypto tax filing service, featuring features to streamline the filing process and maximize deductions. For support services users can count on TokenTax’s team of certified accountants who can answer any of their queries about tax. Plans range from the Premium plan at $199 annually with support for up to 5,000 transactions, up to the VIP plan that allows up to 30,000 CEX transactions annually – each providing users with full tax filing service from start to finish.
TokenTax can automatically import transaction data from both centralized and decentralized exchanges and wallets using its API or an uploaded CSV file, as well as generate all required tax forms like IRS 8949 and FBAR for filing purposes.
TokenTax software offers traders a unique feature to minimize their tax liabilities: creating losses to offset gains. This strategy can help keep profits within digital assets rather than going toward tax liability.
