Top 5 Best Crypto Tax Software Companies

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Calculating your cryptocurrency taxes is one of the most challenging tasks for a cryptocurrency trader. The time it takes to report your cryptocurrency taxes depends on the number of coins you have, the number of trades you have made, and the number of exchanges you trade on. What's more, each exchange has a different output to track your trades, and some don't provide any output at all. Each of your transactions must be separately summarized and recorded, which is very time-consuming. Despite all this confusion, we know one thing for sure - it is more important than ever to report your profit and loss to the IRS (or your country's tax authority). One of the best ways to do this is by using cryptocurrency taxation software. Consider TurboTax, but specifically for calculating tax risks associated with your cryptocurrency trading. These are the top 5 cryptocurrency tax software companies in the industry.

Top 5 Crypto Taxation Software

TaxBit is the only crypto taxation software built by CPA, tax attorneys and software developers. TaxBit provides a complete audit trail of all of its tax calculations so that any CPA or IRS investigator (in the case of an audit) can easily verify the accuracy of your cryptocurrency taxes. TaxBit integrates with all major exchanges. Similar to BlockFi, TaxBit is backed by some of the most respected venture capitalists in the fintech and cryptocurrency industry, including Valar Ventures by Peter Thiel and Winklevoss Capital. BlockFi and TaxBit have teamed up to make cryptocurrency taxes easier for BlockFi users. Use this link to start your free trial and get 10% off your tax plan: www.taxbit.com/invite/Blockfi

TokenTax is one of the easiest ways to report cryptocurrency capital gains and income taxes. Voted by Forbes as the best cryptocurrency tax filing platform, TokenTax is the only crypto tax platform that supports all major exchanges. They have direct BtcNews to all platforms to automatically import your trade data. For non-import exchanges, you can simply upload a file with your trade data and their platform will automatically receive your information. Once all your information is uploaded, TokenTax will generate all the forms required to file a cryptocurrency tax return. This includes Forms 8949, TurboTax, FBAR, FATCA, or any other file you may need. The TokenTax team takes a hands-on approach to customer service and works closely with their customers to ensure that their taxes are calculated in an optimal and accurate manner. Use code BLOCKFI10 to get 10% discount on tax charges.

BearTax is one of the easiest ways to calculate your cryptocurrency taxes. The platform imports your transaction data through integrations with over 25 major exchanges to calculate your profits and provides export documents that you can file for your tax return. The BearTax platform has a number of useful features. First, the user interface is clean and easy to understand. Their “smart match” algorithm matches your withdrawals and deposits on supported exchanges and is easy to view on the interface. This matching feature helps you avoid negative balances that can negatively affect the accuracy of your tax report. Plus, their profit / loss screen for capital gains calculation makes it easy to view your tax liabilities for each crypto asset you own. The platform provides you with a clear understanding of the date of purchase, sale or exchange of all your assets with the corresponding tax liabilities. They are also compatible with both centralized and decentralized exchanges, which reduces the level of complexity inherent in decentralized trading. And if the exchange does not have the ability to connect, they accept data in simple CSV format. BearTax offers a range of pricing packages from $ 0.99 to $ 199.99 per year. All packages include live chat support, unlimited sharing support, loss summary, tax form downloads, detail view, and full tax year availability. The hallmark is the number of transactions supported by each package, which ranges from 20 in the lowest level to unlimited in the largest package. They are a great solution for preparing cryptocurrency taxes. Use code BLOCKFI10 for a 10% tax preparation discount.

CryptoTrader.tax helps cryptocurrency traders calculate their capital gain / loss risks in minutes. Their simple interface makes it easy to import your trades and make sure you don't overpay taxes. Users can also upload their completed tax reports directly to TurboTax for easy completion. The CryptoTrader.Tax platform currently supports over 20 direct connections to exchanges such as Coinbase, Bittrex, Gemini, Binance, and Poloniex. Users can also upload their trade data using the CryptoTrader common exchange template. After importing your trades, CryptoTrader will calculate your tax liability using the same first come, first served method used by CPA and tax collectors in the industry. After calculating your tax burden, users are provided with easily exportable tax documents to file, including IRS Form 8949 and your crypto income. In addition, CryptoTrader creates what they call an audit trail that details each calculation used on your tax return to get a net worth baseline and revenue. This report includes an income statement, a short-term and long-term sales report, a position closing report, and a complete audit trail. “CryptoTrader.Tax offers several price packages. The first is free, which allows users to import all their data and make sure everything looks right before paying. Then you can easily download the required tax reports for a one-time fee. You can use code BLOCKFI10 for a 10% discount on any of the tax preparation packages. "

ZenLedger is an easy way to calculate your cryptocurrency taxes in a simple interface. They are integrated with leading exchanges and support all major crypto and fiat currencies. Their platform quickly imports your transaction history from supported exchanges into the interface and fills in your tax documents automatically. These documents include capital gains reports, income statements, donation reports, and closure reports. They also provide profit and loss statements for you and your CPA or tax professional. All documents created with ZenLedger are IRS-friendly, which means they are designed to seamlessly go straight from the platform into your tax returns. Whether you are a miner or a casual trader, ZenLedger has a very easy-to-use platform designed to ensure that you never overpay taxes. ZenLedger offers three pricing options that range from $ 99 to $ 299 per year and include everything from exchange support, tax reporting, and access for your CPA to the platform. The main difference is the number of transactions per package, which ranges from 100 to unlimited.

CoinTracker is a hybrid cryptoasset tracking and tax reporting software. Their platform automatically syncs your asset balances and transactions with your exchange accounts or local wallets, providing up-to-date information on all your cryptocurrency activities. Their interface displays visualizations of all of your digital assets and their associated trading history. In addition, CoinTracker also provides a performance tracker that gives you a clear view of your cryptocurrency investments over time. Signing up with CoinTracker is very easy and the platform allows you to sign in using your Coinbase account, which is an interesting and unique feature. CoinTracker offers four different pricing packages that range from $ 49- $ 999 and vary depending on the number of transactions you need to track. All of their options include base value reports (FIFO, LIFO, HIFO, ACB, stock pool), automatic syncing with exchanges and wallets, capital gains reports and exported data such as IRS Form 8949, TurboTax and TaxAct.