Crypto

Best Crypto Tax Software: How to Choose the Right One for You

Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not issued or controlled by any central authority. Cryptocurrencies can be used as a medium of exchange, a store of value, or a unit of account. Some of the most popular cryptocurrencies are Bitcoin, Ethereum, Cardano, Polygon, and more.

However, investing in cryptocurrencies can also have tax implications. Depending on your jurisdiction, you may have to report your cryptocurrency transactions and pay taxes on your capital gains or losses. This can be challenging and complicated, as cryptocurrencies are highly volatile and subject to various regulatory and legal uncertainties.

Fortunately, there are crypto tax software programs that can help you manage your tax obligations. Crypto tax software programs are applications that allow you to record your cryptocurrency transactions, track your capital gains or losses, generate tax reports, and file your taxes. Crypto tax software programs can save you time, money, and hassle by automating and simplifying the crypto tax process.

But how do you choose the best crypto tax software for your needs? There are many factors to consider, such as:

  • Price: How much does the crypto tax software cost? Does it offer a free plan or a free trial? Does it charge per transaction or per year? Does it offer discounts or refunds?
  • Features: What features does the crypto tax software offer? Does it support multiple cryptocurrencies and exchanges? Does it integrate with other platforms or services? Does it offer advanced features such as portfolio tracking, audit protection, or expert assistance?
  • Ease of use: How easy is the crypto tax software to use? Does it have a user-friendly interface and design? Does it offer clear instructions and guidance? Does it have a mobile app or a web portal?
  • Customer support: How good is the customer support of the crypto tax software? Does it offer multiple channels of communication, such as email, phone, chat, or social media? Does it offer fast and reliable responses? Does it offer helpful resources, such as FAQs, tutorials, or blogs?

To help you make an informed decision, we have reviewed and compared some of the best crypto tax software programs available in 2023. We have evaluated them based on their prices, features, ease of use, and customer support. Here are our top picks:

Koinly: Best Overall

Koinly is one of the best crypto tax software programs in the market. It offers a comprehensive and easy-to-use solution for crypto investors and traders. Koinly can connect with over 300 exchanges and wallets and support over 6,000 cryptocurrencies. Koinly can also generate tax reports for over 100 countries and regions, including the US, UK, Canada, Australia, Germany, France, and more.

Some of the features that make Koinly stand out are:

  • Automated data import: Koinly can automatically import your transaction data from your exchanges and wallets using API keys or CSV files. You can also manually enter your data or use Koinly’s web app or mobile app to scan QR codes or take photos of receipts.
  • Accurate calculations: Koinly can accurately calculate your capital gains or losses using various methods, such as FIFO , LIFO , HIFO , or ACB . Koinly can also handle complex scenarios , such as margin trading , staking , mining , airdrops , forks , swaps , ICOs , NFTs , and more.
  • Customizable reports: Koinly can generate tax reports that comply with the rules and regulations of your jurisdiction. You can also customize your reports by choosing your preferred currency , time zone , date format , rounding method , or decimal places . You can also download your reports in various formats , such as PDF , CSV , XLSX , TXF , XML , JSON , or HTML .
  • Expert assistance: Koinly offers expert assistance from qualified accountants who can review your reports , answer your questions , or help you file your taxes . You can also access helpful resources , such as FAQs , guides , articles , videos , podcasts , or webinars .

Koinly’s pricing plans are based on the number of transactions you have per year. You can choose from four plans:

  • Hodler: This plan is free and allows you to track up to 10 transactions per year. You can also view your portfolio value and performance.
  • Trader: This plan costs $49 per year and allows you to track up to 300 transactions per year. You can also generate unlimited tax reports for one country.
  • Investor: This plan costs $179 per year and allows you to track up to 3,000 transactions per year. You can also generate unlimited tax reports for three countries.
  • Pro: This plan costs $399 per year and allows you to track unlimited transactions per year. You can also generate unlimited tax reports for unlimited countries.

Koinly also offers a 14-day money-back guarantee and a referral program that gives you and your friends 10% off your plans.

CoinTracker: Best for Customer Support

CoinTracker is another excellent crypto tax software program that offers a simple and reliable solution for crypto investors and traders. CoinTracker can connect with over 300 exchanges and wallets and support over 8,000 cryptocurrencies. CoinTracker can also generate tax reports for over 20 countries and regions, including the US, UK, Canada, Australia, Germany, France, and more.

Some of the features that make CoinTracker stand out are:

  • Seamless integration: CoinTracker can seamlessly integrate with other platforms and services that you use for your crypto activities, such as Coinbase , TurboTax , TaxAct , H&R Block , Crypto.com , Ledger , Trezor , and more.
  • Portfolio tracking: CoinTracker can help you track your portfolio value and performance across all your exchanges and wallets. You can also view your portfolio breakdown by asset , exchange , or wallet . You can also monitor your portfolio trends , balances , transactions , fees , and more.
  • Tax optimization: CoinTracker can help you optimize your taxes by showing you your tax liability in real time , suggesting tax-saving strategies , such as harvesting losses or donating to charity , and alerting you of potential errors or audits .
  • Customer support: CoinTracker offers excellent customer support from its team of experts who can assist you via email , chat , phone , or video call . You can also access helpful resources , such as FAQs , guides , articles , videos , podcasts , or webinars .

CoinTracker’s pricing plans are based on the number of transactions you have per year. You can choose from five plans:

  • Free: This plan is free and allows you to track up to 25 transactions per year. You can also view your portfolio value and performance.
  • Hobbyist: This plan costs $9 per year and allows you to track up to 100 transactions per year. You can also generate unlimited tax reports for one country.
  • Trader: This plan costs $49 per year and allows you to track up to 1,000 transactions per year. You can also generate unlimited tax reports for one country.
  • Enthusiast: This plan costs $99 per year and allows you to track up to 5,000 transactions per year. You can also generate unlimited tax reports for one country.
  • Unlimited: This plan costs $199 per year and allows you to track unlimited transactions per year. You can also generate unlimited tax reports for unlimited countries.

CoinTracker also offers a 14-day money-back guarantee and a referral program that gives you and your friends $10 off your plans.

TaxBit: Best for Free Crypto Tax Reporting

TaxBit is a great crypto tax software program that offers a cost-effective and user-friendly solution for crypto investors and traders. TaxBit can connect with over 100 exchanges and wallets and support over 4,000 cryptocurrencies. TaxBit can also generate tax reports for the US, UK, Canada, Australia, Germany, France, and more.

Some of the features that make TaxBit stand out are:

  • Real-time calculations: TaxBit can calculate your capital gains or losses in real time as you trade or transfer your cryptocurrencies. You can also view your tax liability or refund at any time on your dashboard.
  • Audit trail: TaxBit can provide you with an audit trail that shows how each transaction affects your taxes. You can also view the details of each transaction, such as date, time, amount, price, fee, cost basis, gain or loss, and tax rate.
  • Tax forms: TaxBit can generate tax forms that comply with the IRS requirements, such as Form 8949 and Schedule D . You can also download your forms in PDF or CSV formats or export them to other platforms or services, such as TurboTax or TaxAct .
  • Free plan: TaxBit offers a free plan that allows you to track up to 250 transactions per year. You can also generate unlimited tax reports for one country.

TaxBit’s pricing plans are based on the number of transactions you have per year. You can choose from three plans:

  • Basic: This plan costs $50 per year and allows you to track up to 2,500 transactions per year. You can also generate unlimited tax reports for one country.
  • Plus: This plan costs $175 per year and allows you to track up to 25,000 transactions per year. You can also generate unlimited tax reports for one country.
  • Pro: This plan costs $500 per year and allows you to track unlimited transactions per year. You can also generate unlimited tax reports for unlimited countries.

TaxBit also offers a 30-day money-back guarantee and a referral program that gives you and your friends $10 off your plans.

Conclusion

Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they 300 exchanges and wallets and support over 8,000 cryptocurrencies. CoinTracker can also generate tax reports for over 20 countries and regions, including the US, UK, Canada, Australia, Germany, France, and more.

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