Cryptocurrency tax software is an essential way to untangle the years of playing around with cryptocurrency. It’s easy to log your software of choice into every single online exchange you’ve ever used. Then, the cryptocurrency tax software’s API (application programming interface) can download all the historic buys, sells, and trades, and figure out how best to sort them out by whether or not there’s a tax liability and how much you probably owe your tax authority. And, most will fill out all the forms you need and even allow you to get right with your local variation of the Internal Revenue Service (IRS).
Some cryptocurrency tax software offers a free version, some have price tiers, some are better for individuals (amateur) while others better serve institutional (professional) investors. In most cases, governments tax cryptocurrency as capital, and so the cryptocurrency tax software needs to come up with how much capital gains they need to tax. It’s a little different in France and the United Kingdom (UK). The French define cryptocurrency as movable property and they tax it 19%. In the UK, they call crypto an asset/private money.
Here’s a list, a link, and a short description of the most popular cryptocurrency tax software:
BitCoinTaxes is considered one of the least expensive cryptocurrency tax software options. It excels in cryptocurrency capital gains tax reporting for traders, businesses, traders, and tax pros.
Cryptotrader.tax by Coin Ledger’s software allows you to quickly connect to your exchanges and then print out a tax report.
ZenLedger tracks trades, allows you to check your profits, and then print out any financial reports or tax forms that you need for your local tax authority. You can invite your tax preparer, accountant or bookkeeper onto the platform for no additional fee.
CoinTracker tracks and reports your crypto assets. You can sync up your exchange data and your local cryptocurrency wallets. It renders your crypto-financial history visually and then allows you to prepare your tax forms from all your trades. This visualization allows you to track your wins and losses in one place across all your exchanges.
Accointing is the best software for active traders. It supports many wallets across many exchanges. If you need it, Accointing offers advanced charting tools, visualizers, calculators, and reporting tools. The only downside is its incompatibility with TurboTax.
CoinTracking launched its software back in 2012, making it one of the most mature. Pricing is extremely broad, from free to its $600 site license. CoinTracking might have the biggest selection of analysis tools. It supports more than 7,000 coins and 70 exchanges and ten separate accounts. The downside is that it can be overwhelming if you need something simpler and easier.
Koinly is a cryptocurrency tax software focused on simplicity: support for more than twenty countries, six-thousand coins, six years of price records, and compatibility of many exchanges.
Can’t Go Wrong with Modern Crypto Tax Software
There are many more crypto tax software solutions out there. While there’s a lot in common among all the above software solutions, they seem to differ only in simplicity and price. They’re all more than capable to get you back in the graces of the IRS or your local tax authority.