The number of individuals who put money into cryptocurrency continues to rise dramatically as time goes on. The reason for this is crypto’s potential to quickly turn you into a wealthy person or even a millionaire. As time has shown, this is true.
When it comes time to settle up with the IRS over crypto trades you’ve made, things might get complicated. However, if you’re paying taxes and have cryptocurrency holdings, you can adopt crypto tax software to sync your holdings among your cryptocurrency platforms and wallets seamlessly.
Here’s a list of the 5 best Crypto Tax Software:
In addition, it can also help you analyze your capital losses and gains and generate comprehensive tax reports. On that note, let’s look at some of the best crypto tax software out there.
Koinly supports the ability to monitor profits made through novel applications of crypto financing.
Koinly is one of the top crypto tax software because it integrates seamlessly with your numerous cryptocurrency wallets, platforms, blockchain addresses, and services to provide a consolidated view of your cryptocurrency holdings.
You can quickly and effortlessly transfer every one of your trades from the past year using CSV files or API keys from each crypto exchange account. Furthermore, you can also monitor the public addresses connected to your privately owned cryptocurrency and observe any changes they may undergo.
Koinly also supports the ability to monitor profits made through novel applications of crypto financing, like staking, borrowing, and lending. You can keep tabs on your crypto investments’ annual gains and losses with the help of the application’s built-in portfolio tracker. You can also monitor your projected capital gains tax liability over time to avoid any unpleasant surprises at tax time.
- Integrates with 353 cryptocurrency trading platforms, 74 cryptocurrency wallets, and 14 blockchain addresses.
- It keeps all of your data in sync without lifting a finger.
- It makes it possible to send your financial information to TurboTax, TaxAct, and other tax preparation programs.
- Keeps tabs on your investments across your accounts and wallets, including current P&L and tax information.
- To date, there has been no stand-alone tax-loss harvesting technology developed.
- The cost-free solutions do not incorporate a tax report.
Our second option is:
CoinTracker provides the option to transfer data to tax software like TurboTax and TaxAct.
Over one million people trust CoinTracker, the leading cryptocurrency accounting tool. Your portfolio is monitored mechanically, and you can use tax-loss harvesting features to cut costs.
You can trust your cryptocurrency tax returns with CoinTracker. It’s great to see so many useful features included. Moreover, you can keep track of 10,000+ different cryptocurrencies, which is a major advantage over its competitors.
- Functions to automatically synchronize your trade details from an unlimited number of cryptocurrency exchanges.
- Gains on investment are computed.
- Provides the option to transfer data to tax software like TurboTax and TaxAct.
- The Unlimited plan includes access to a dedicated team of CPAs for all your tax and accounting needs.
- There are apps for both Android and iOS.
- They accept over 10,000 different cryptocurrencies.
- The number of transactions you can make with the free plan is capped at 25, and there is no live chat assistance. Only the premium “unlimited” option includes limitless transactions.
CryptoTaxCalculator has an algorithm to do the math and make the necessary tax reports.
If you’re having trouble getting the exact cryptocurrency tax calculations, CryptoTaxCalculator could be exactly what you need. This program not only works with a wide variety of prominent platforms, but it also makes extensive computations using the information it gathers.
The specifications of airdrops, stakes, mining, Defi stake incentives, and ICO activity, are all taken into account by this tool. It has an algorithm to do the math and make the necessary tax reports. Gains and income from realized investments will be detailed here. You can then easily integrate the information into your tax program or send it to your lawyer.
- The entire procedure of generating tax returns is computerized.
- Major crypto exchanges supported
- Free-trial available
- Only the higher-priced plans get access to the extra features.
- Support for only a handful of countries
CoinLedger will assist you in calculating your cryptocurrency tax obligations.
CoinLedger (previously known as CryptoTrader.Tax) is a fantastic crypto tax software that will assist you in calculating your cryptocurrency tax obligations and generating IRS-compliant reports. All the paperwork you will require is included.
The IRS 8949 form, as well as data on short-term and long-term sales, cryptocurrency revenue, foreign gain/loss, and more, can all be generated with little effort using this software. The information provided by CoinLedger is both easy to understand and reliable. It’s compatible with TurboTax, TaxDirect, and more than a hundred other cryptocurrency exchanges and wallets.
- Track your portfolio free of cost
- Enjoy TurboTax Partner
- Simple tool for calculating cryptocurrency taxes
- International Support
- Amazing integrations
- You can only use major credit cards like Mastercard, Visa, or American Express; cryptocurrencies are not accepted.
- CoinLedger will automatically generate Form 8949, but you will need to manually fill out Schedule D and any other relevant tax forms yourself.
You can use Fyn to record and monitor your digital holdings and transactions.
In the world of cryptocurrencies, Fyn is the accounting software of choice. Cryptocurrency investors, traders, and corporations can use the platform’s tax preparation services. They can use it to record and monitor their digital holdings and transactions.
The program was developed to help determine how to pay taxes with cryptocurrency. Manually or mechanically, Fyn members can import trades from various markets. In addition to this, tax forms can be generated in a matter of minutes using the software.
- Fyn can process custom uploads and is integrated with almost every exchange.
- You can reduce your taxes using the Fyn as it uses AI-powered algorithms.
- It provides you unparalleled security to protect your private keys or API details.
- Sync directly with a selected few wallets and exchanges.
- Unfortunately, there is no loss-harvesting technology
- A handful of countries are supported
With so many Crypto taxes calculating software, one can easily get overwhelmed and end up with the wrong one. However, reading about them in detail and understanding if they meet your needs is one of the best ways to go about it. So, take your time and consult an expert if you need help.
If you are looking for ways on how to legally avoid paying taxes, click here.