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- 1 In the last few years, the number of crypto taxpayers has been going up steadily.
- 2 The new and even experienced crypto traders need to know the apps for managing crypto taxes.
The world is way beyond the point where everyone discussed the validity of crypto. Today, various countries are working to prepare a regulatory framework for it. Europe will most likely implement it by the end of the next year. But that doesn’t mean that crypto is entirely out of the system.
People who are buying and selling cryptos have to pay taxes on their income. Almost every country that allows crypto is adhering to this principle. In the last few years, the number of crypto taxpayers has significantly risen. With that, the applications facilitation tax calculation and management have also become popular.
So let’s become familiar with a few such applications that help crypto taxpayers.
Most Popular Crypto Tax Software
The following applications have conducive features and make crypto traders’ jobs easier.
Koinly
Launched in 2018, Koinly operates in more than 20 countries. It provides solutions for tax reporting and tracking of several cryptocurrencies. One of its notable features is that it gives an income overview to users. They can see how much they have earned from different activities like mining, DeFi, and staking.
Moreover, the platform supports automatic imports from other blockchains and exchanges. On the downside, its customer support hasn’t been up to the mark as per many users. In addition, its transaction limit is 100,000 per year which may not be sufficient for many traders.
CoinLedger
With a user base of 400,000 investors, CoinLedger is a leading crypto tax platform in the world. The platform offers an easy interface that makes taxation easy even for new traders. It also simplifies the process by integrating several exchanges and networks.
That enables users to file their taxes in real time in just a few minutes. According to users, it takes very little time to import wallets and transactions. Traders can enjoy access to DeFi, NFT, and several other leading exchanges. It prepares a tax-loss harvesting report that enables traders to identify tax-saving opportunities too.
When it comes to support, it’s available over live chat and email. Furthermore, it implements auto-matching on on-chain transactions to make the calculation flawless. It also includes custom reconciliation features that help users in many ways.
If one tries to find a con, CoinLedger doesn’t accept crypto as payments.
TokenTax
TokenTax is a full-fledged crypto accounting firm. Therefore, its crypto tax services are considered more reliable by many traders. On top of that, it offers exclusive plans for crypto business firms and entrepreneurs. The biggest highlight is that it takes care of the entire process of taxation on behalf of its customers.
Of course, they’ll have to pay more for it, but the service is worth considering. It provides support at every pricing tier while offering DeFi and NFTs. As for the cons, TokenTax is pricier than the other platforms. Besides that, users pay extra for importing transactions from other exchanges and blockchains.
ZenLedger
Established in 2017, ZenLedger boasts a 50,000-strong user base in the US. Its biggest USP is probably the in-built integration of hardware wallets like Trezor. While supporting NFT, DeFi, and staking, it allows users to import tax reports into TurboTax. For the uninitiated, TurboTax is another leading crypto tax application.
ZenLedger also releases tax-loss harvesting reports to help its customers. On the demerits front, users have to subscribe to the premium plan to get support for more than two hours. Some have also reported a complex user experience.
CoinTracker
Launched in 2017, CoinTracker is well-known for portfolio tracking and crypto tax reporting. It supports more than 10,000 digital assets while facilitating the tracking of gains and losses. Using this software, traders can track their income conveniently throughout the year.
Its tax-loss harvesting report helps traders find many profit-making opportunities. The cons involve only email support and affordability. Its pricing depends on the number of transactions users have.
TaxBit
Founded in 2018, TaxBit caters to businesses, individuals, and governments. It is particularly known for data analysis services to government agencies. The platform has integrated more than 500 exchanges offering DeFi transactions and NFTs.
It also lets users import the reports to TurboTax. Nevertheless, the platform lacks functionality aspects. It does not let users add transactions and is available only in the US.
Conclusion
Using the top crypto tax software, users can save their time, effort, and money. As mentioned above, these applications come with many helpful features. They make the job of crypto buyers/sellers very convenient and cost-effective. They also help traders strategize their investments by giving in-depth insights.
But before choosing any particular program, users must compare different options. The right application will certainly assist in making the trade more profitable.
Meta: Most nations have brought the income from crypto trading under taxes. Thus, traders need to calculate them with precision using this software.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
