We have already discussed that in some countries, the legislation presupposes cryptocurrency operation taxing. Residents of some European and Asian countries have to declare their revenue from crypto trading. However, all those calculations might be pretty confusing. This is where crypto tax software comes in handy. Today, we will observe the best crypto tax software for you to make an informed decision and sleep soundly knowing that you have no debts.
What Is Tax Software Used For?
To put it simply, tax software programs fetch the information about your crypto operations and automatically calculate the amount of taxes to be paid to the government. Some of the software suits feature automatic tax report generation – this is a great option that eliminates the need for manual work with documents.
Crypto tax software is a perfect option for beginners and those who perform regular crypto transactions and don’t have time to track them all.
Top-7 Best Cryptocurrency Tax Software
Established: 2013 Supported exchanges: 50+ Price: 0 to 0.03 BTC/year
Founded in 2013, CoinTracking was one of the first crypto tax software solutions and has proved to be one of the most efficient alternatives for cryptocurrency specialists. With its wide scope of functionalities and sensible pricing, it is one of the leaders of the industry.
CoinTracking’s most outstanding functions include:
Calculation of main points,
Profit/loss and audit statistics
Reports about all types of gains;
Tax declaration capital gains report (12 tax methods supported);
TokenTax is another famous Bitcoin tax software that both newcomers and experienced merchants can use to guarantee that they are recording their crypto transactions accurately. TokenTax features a wide assortment of functions to guarantee that any kind of crypto revenue you get can be accounted for in a completely tax-compliant way.
Main features of TokenTax include:
FIFO, LIFO tax models support
Almost 9,000 types of reports and templates
Tax advisor chat support
Two 30-minute sessions on crypto taxes;
Established: 2017 Supported Exchanges: 100+ Price: $50-500 per year
TaxBit is the only crypto tax software founded by CPAs, tax attorneys, and software developers. TaxBit provides a full audit trail behind all of their tax calculations so that any CPA or IRS investigator (in the event of an audit) can easily verify the accuracy of your crypto taxes. TaxBit integrates with every major exchange. TaxBit is backed by some of the most reputable VCs in Fintech and crypto, including Peter Thiel’s Valar Ventures, Winklevoss Capital, Dragonfly Capital, Collaborative Fund, and more. TaxBit is the preferred partner of leading exchanges such as Gemini, Uphold, BlockFi, CEX, and BitStamp.
automatical synchronization of all user’s transactions from crypto exchanges;
takes less than a minute to connect via API;
instant download of the IRS Tax Form 8949. This form can then be handed over to a user accountant or uploaded into popular tax filing software such as TurboTax, TaxAct, etc.;
supports over 4,200 cryptocurrencies, equities, commodities, and all fiat currencies.
This top crypto tax software has been utilized by Bitcoin financial specialists for five years. Today, this is still an exceptionally famous crypto exchange used by both small traders and large investors.
wallets and CSV import income from Coinbase, BitPay, CEX.IO, or CSV;
CoinTracker may be far not the cheapest crypto tax software, but it stands apart for such features as margin trading and tax-loss harvesting. Because of its propelled functionalities, it is recommendable tax software for advanced merchants, which is additionally reflected in the pricing.
BearTax is one of the most up to date contestants in the crypto tax programming market. Its basic cost is just $0.99/year for beginners, which makes it incredible tax software to support learners and minor crypto traders.
CryptoTrader.Tax is another cryptocurrency tax software for US-based advanced crypto financial specialists that covers all the significant features you might want. Easy-to-comprehend for new clients, it is a superb solution for minor investors who need to guarantee that they are recording their Bitcoin returns in a fully consistent way.
Zen Ledger is a straightforward and simple-to-use online crypto tax application that covers all the details you need to specify for filing crypto taxes in the US. While it doesn’t all the features that its counterparts possess, its easy-to-use UI/UX compensates for that.
Zen Ledger features:
FIFO/LIFO tax models
Unlimited number of exchanges
Donations and mining tax calculation
Turbo Tax feature
With the help of crypto trading tax software, you will be able to manage tax filing without extra efforts – the above-mentioned comprehensible solutions can perform calculations and reporting for you. Even if you a minor investor, there are cheap and free options available – finding the one with basic functionality won’t be a problem.