Best Crypto Tax Softwares - Top 5 Analysis
Are you a cryptocurrency trader who is worried about filing crypto taxes? We understand that filing crypto taxes is one of the problematic parts of crypto trading. Crypto tax reporting can turn out to be a lengthy process.
So, what's the average time for you to report on your crypto taxes? It depends! Many factors influence the total time it takes to report your crypto taxes. Some of the main factors are the total number of coins you have, the number of exchanges you are trading on, and your total number of trades across all the exchanges.
You must also factor in the different output types exchanges offer you to keep track of all your trades. As there’s no standard on this, exchanges often have slightly different output formats - making it even harder to file your crypto taxes. On top of that, some cryptocurrency exchanges don't provide any trading data at all. In the end, you will have to add and record all the crypto trades you did. Hence, it’s a very time-consuming activity.
In the 2020's income tax draft, many countries seek to treat crypto trading profits as a taxable asset. It is why you need to track all your profits and losses from crypto trading. Regulations will only become better with regards to crypto trading. Hence, it’s a must that you report your cryptocurrency trades if you are a crypto trader.
There's no need to worry as there are many crypto tax software in the market today. A crypto tax software is your best option when it comes to adding and recording your cryptocurrency trades. We will present to you the five best crypto tax software options available in the market today.
CryptoTrader.tax has established itself as a credible crypto tax software. It can help you calculate your capital gains and losses through crypto trading within minutes. Also, it provides an option for its users to upload the completed tax reports into TurboTax, an American tax preparation software package. Hence, it will make your tax filing easy if you are an American citizen.
The crypto tax software by CryptoTrader.tax sports a quite simple interface. Hence, you would be able to import your trades easily. They support 20 crypto exchanges, such as Poloniex, Gemini, Binance, Coinbase, Bittrex, among others.
You will also benefit from the "audit trail" feature of CryptoTrader.tax. It provides details of every single calculation that was part of your tax filing process. The audit trail feature will help you find the data regarding the net cost basis and proceeds.
CryptoTrader.tax has four pricing plans and these are:
#1. Hobbyist - $49 per tax season
#2. Day Trader - $99 per tax season
#3. High Volume Trader - $199 per tax season
#4. Unlimited - $299 per tax season
Koinly is one of the best options for tracking your crypto trades to properly file your income tax reports. Its users can connect their exchange accounts and wallets with Koinly to track all their crypto transactions. As of now, Koinly supports 350 crypto exchanges and 75 wallet providers. It can also integrate with more than 6000 blockchains and is available in more than 20 countries.
A user can also generate localized tax reports depending upon their residency. They can generate forms such as Form 8949 and Schedule D, K4, Swiss Valuation Report, Capital gains summary for the UK, and Sheet 9A. Not only exchanges and wallets, but Koinly can also integrate with some of the leading crypto lenders, such as BlockFi, Nexo, and Compound.
Currently, Koinly offers four plans to its users, and these are:
#1. Free plan
#2. The Hodler Account - $49 per tax year
#3. The Trader Account - $99 per tax year
#4. The Oracle Account - Upto 3000 transactions, the price is $179 per tax year. For 10000 transactions, the price is $279 per tax year.
If you are an active crypto trader, then Accointing is one of the best crypto tax software for you. It offers automated data imports and tracking to its users. The software offered by Accointing has a user-friendly interface across both its mobile apps and web-based versions. It also supports almost all major cryptocurrency exchanges.
A user opting for Accointing will benefit from its comprehensive crypto tracking and optimization features. On top of that, it also offers its users features such as accounting trading metrics, and advanced charting tools. Furthermore, Accointing offers unlimited data importing to all users, regardless of which plan they choose. They can import data through CSV as well as an API.
Accointing offers three different plans to its users. These are:
#1. Basic Plan - $49.99 for 250 transactions tax report/365-days license
#2. Advanced Plan - $129.99
5,000 transactions tax report/ 365-days license
#3. Pro Plan - $259.99 for unlimited transactions report/ 365-days license
TokenTax is a leader when it comes to pure crypto tax software. But TokenTax does not offer live tracking and analysis options like some of its peer software do. Yet we cannot discount the fact that TokenTax is an affordable and comprehensive crypto tax software.
It’s one of the only crypto tax software that supports almost all leading cryptocurrency exchanges. TokenTax allows you to import your trading data directly through the exchanges as it has direct connections with most of them. So, what will you do when your exchange does not offer an import option? In this case, you can upload a file that contains your trading data. Then, the TokenTax platform will ingest all your information automatically.
TokenTax software will generate forms such as TurboTax, FATCA, 8949, or any other ones that you will need during the tax filing process. It only requires that you provide all the information that TokenTax asks from you.
TokenTax offers four plans currently. These are Basic, Premium, Pro, and Crypto CPA Assisted. The Basic plan costs $65, the Premium plan costs $199, the Pro plan costs $799, and the Crypto CPA Assisted plan costs $1499. All their prices are in terms of tax seasons.
TaxBit was launched by its founders to simplify the crypto taxation process. The crypto tax software offered by TaxBit gives real-time visibility to crypto tax traders into their crypto usage.
Besides that, it helps in automating all requirements of crypto tax reporting. TaxBit's crypto tax software offers a user-friendly way of filing your crypto taxes. Furthermore, the TaxBit software also offers the audit trail feature similar to that of CryptoTrader.tax. The audit trail feature offers a full cost-basis breakdown. This allows you to inspect every single transaction to see how your crypto taxes were calculated.
What's the best thing about TaxBit? TaxBit charges extremely affordable prices from its users.
TaxBit offers three different plans to its users. These are:
#1. Basic Plan - $50 per year
#2. Plus Plan - $175 per year
#3. Pro Plan - $500 per year
It has become very important to keep track of all your crypto transactions and activities today. The tax authorities around the world are now taking crypto taxes seriously. But you don't have to track all your crypto transactions manually. Instead, you can leverage one of the crypto tax software solutions that are available in the market. We have provided a list of the best crypto tax software in this article. You can go ahead with any of them depending on your needs.
Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.