Investing in cryptocurrency can make taxes a tedious process, and there is software for that. This article will discuss the pros and cons of TurboTax, TokenTax, Koinly, and Accointing, and how to choose the best program for your needs. Regardless of which tool you choose, you should consider these features for your crypto-related tax returns. Here are some things to consider when selecting cryptocurrency tax software:
TokenTax
The IRS has made some changes in its cryptocurrency tax regulations, but many people are still left guessing about how to file. To solve this problem, TokenTax has acquired an accounting firm and added a CPA tax filing service. This software can import your data and calculate the tax owed on your crypto portfolio. In addition, you can add account add-ons to simplify the process of calculating your taxes.
The TokenTax website requires you to sign up before you can begin using the software. It will ask for your email address and password. Alternatively, you can sign up using your Google account. You can then choose which crypto tax reporting package you want to use. To use TokenTax, you will need JavaScript enabled on your computer. Once you’ve signed up, you’ll be able to use the software.
TurboTax
If you’ve been using cryptocurrency as part of your everyday life, you’re probably wondering if you should buy Crypto Tax Software. The answer to this question depends on whether you use it for trading or for transferring. While some crypto tax software may be limited in what it can do, TurboTax has comprehensive coverage of this niche market. But you may need to read up on crypto tax legislation to fully understand how it applies to your business.
A good crypto tax calculator should offer 100 percent accuracy. A good tax software should also allow you to identify transactions made between different wallets, since incorrectly counting transactions can lead to higher taxes. Also, it should eliminate duplicate transactions to ensure you don’t pay more taxes than you need to. Finally, the best crypto tax software will include a team of tax experts who can help you get your taxes done properly. But which one is the best?
Koinly
Koinly is a cryptocurrency tax software that helps you with the calculation and reporting of your crypto trading income and losses. You can use the software to keep track of the prices of cryptocurrencies, calculate crypto losses, and observe market developments. It is available in 20 countries and integrates over 5000 blockchains. The software allows you to generate tax reports and provides a free debt relief counseling service. Users can also opt for free gift or airdrops and earn a percentage of the profits.
Koinly supports more than 6,000 cryptocurrencies and is available for download from a website. It also lets you invite a tax professional to assist you with your financial reporting. The only downside of Koinly is that it doesn’t sync or track your NFT trades automatically. Moreover, it has a limited mobile app that is still in beta. Another drawback is that Koinly does not automatically generate other crypto tax documents.
Accointing
The Accointing tax software helps a cryptocurrency trader to accurately report on their investment. Its features include an organized interface for flagging transactions, as well as an option to choose whether you want to generate tax forms manually or via an online service. However, it does have a few drawbacks. The software is not free, and it does require a premium subscription. Users should be aware that if they want to try out Accointing, they must upgrade to its VIP plan.
The free tier of Accointing is limited to calculating crypto tax for up to 25 transactions. The paid versions include a number of features. Accointing supports data import from 50+ wallets and 15 blockchains, catering to 17000+ crypto coins. It can also report missing transactions or remove duplicate entries. The free tier supports Margin and DeFi trading. Accointing supports a range of exchanges and FIFO reporting methods. Users can also upload a CSV file and manually enter transactions.
BearTax
If you are looking for a crypto tax software that will streamline your reporting and save you time and money, you should consider BearTax. This free program has been used by over 13,000 investors to maximize their gains and save them time and money when it comes to filing taxes. It has a positive reputation among users and over 40,000 of them have recommended it. In addition, it can save you countless hours of work in calculating your taxes.
As a bonus, the software works with nearly every cryptocurrency exchange. You can set up BearTax to automatically import data from your exchange or manually upload the data. It supports over 50 exchange platforms and offers four different subscription plans. It is free to sign up for a free trial, and you can track up to 25 transactions without paying anything. To get started with the program, you should register and login to your exchange.