There is a steady rise in the number of people investing in defi crypto and the number is only expected to increase with the passage of time. This is because crypto, as history bears witness, has the potential to give back huge returns and turn you into a millionaire.
However, filing and reporting taxes on your crypto exchange trades may be a time-consuming procedure. It is especially true if you’ve made a lot of transactions in a year, which will make it difficult to track and calculate gains and losses.
The best crypto tax software can assist you by automatically syncing between crypto exchanges and wallets and calculating your capital gains.
Crypto Tax Software
The sole purpose of crypto tax software is to make crypto taxes as simple as possible. These systems maintain track of your cryptocurrency transactions and compute any capital gains taxes as per the tax obligations in your region.
Benefits Of Using Crypto Tax Software
Using crypto tax software, you’ll have the following benefits:
- Tracking your crypto trade and transaction history
- Integration with various exchanges and wallets for ease of tax filing
- Harvesting tax losses to optimize your taxation
- Including international taxes, if foreign currency is involved
There are several systems that can help you with your crypto taxation. But how can you choose the best crypto tax software?
How To Choose The Best Crypto Tax Software
The following points will help you choose the best crypto tax software for your tax filing:
Data Import
If you want to learn more about your crypto transactions, the first step is to import your data on the platform. Without the simplicity of importing data into it, any crypto tax software would be useless and make the process of tax filing all the more laborious.
Tracking And Management
Software that combines tax software and tracks your crypto activities can be especially useful for trading analytics. Using such tax software can help you comprehend your whole portfolio, evaluate it, and offer you professional insights.
Crypto Tax Reporting
The best crypto tax software will help you link to the appropriate tax systems, and allows you to file all of your tax returns in one place.
12 Best Crypto Tax Software Of 2021
Here are the best crypto tax software of 2021 and their best features:
- ZenLedger
- Accointing
- Bear.Tax
- Blockpit
- Blox
- BitcoinTaxes
- CoinTracker
- CoinTracking
- CryptoTrader.Tax
- Koinly
- TaxBit
- TokenTax
ZenLedger (Free and paid plans starting at $49 per year)
The first one on the list of the best crypto tax software is ZenLedger. The platform simplifies the process of tax calculation and reporting. ZenLedger has integrated with over 400 exchanges and more than 30 DeFi protocols that cater to over 15K customers.
- Calculates gains and losses by taking reference from your transaction history
- Connect to TurboTax
- Consult a tax professional
- Integrated accounting reporting and tax loss harvesting tools
Accointing (Free & paid plans for hobby, trader, and pro users)
Accointing is a one-stop shop for all things crypto and includes all the major crypto tax features. You can track the crypto market trends, evaluate your portfolio and also harvest your tax losses. Accounting provides you with a report that helps you easily file and report your taxes.
- Examine your portfolio to make better decisions
- Analyze the crypto market
- Calculate crypto profit and losses
- Download the tax report that the software creates to report taxes
- Tax-loss harvesting
Bear.Tax (Basic plan starts at $10 per tax year)
Another software that deserves mention in the list of the best crypto tax software is Bear.Tax. The software can help you import your transaction, calculate your taxes, generate tax reports as well as let you send them to CPA.
- Import trade from crypto exchanges
- Automate the tax filing process
- Calculate crypto profits and losses
- Report sales and audit report
Blockpit (Free basic plan)
Blockpit is best known for optimizing all tax filings. This software is particularly helpful for traders, tax advisors, banks, and government agencies as it provides simple and authentic professional solutions.
- Auto-syncing data (API and CSV process)
- Easily navigable interface
- Real-time data tool
Blox (Free)
Another multi-purpose crypto tax software is Blox because apart from generating tax reports, it doubles as a crypto tax tracking and management app.
- Integrated with many crypto wallets and exchanges
- Auto-sync and data tracker
- Professional CPA consultation
- Real-time asset tracking and historical analysis
- Supports touch ID and face ID
BitcoinTaxes (Free and paid plans starting at $39.95 per tax year)
Best known for the various plans dedicated to different types of users, BitcoinTaxes also offers a free plan. The platform eases your process of tax filing by providing you with a detailed report of your capital gains and losses. BitcoinTaxes also assists you with a professional tax consultant who can advise you on your taxes.
- Calculation of capital gains and losses
- Complete tax preparation
- The assistance of tax specialists
- Harvesting tax losses
CoinTracker (Free and paid plans starting at $59)
CoinTracker is a reliable tax software that has the most user-friendly mobile app interface and has over 500,000 users. Apart from keeping track of your portfolio, it lets you reduce your tax liabilities by tax-loss harvesting options.
- Integrated with many crypto wallets and exchanges
- Supports 2500+ crypto
- Calculates capital gains and losses
- Contact CPA using the paid plans
- Export tax reports to TurboTax or TaxAct
CoinTracking (Free and paid plans starting at $10.99/ month)
With over 930,000 active users, CoinTracking is considered one of the best crypto tax software because of the plethora of features for tax filing. It also doubles as a market analysis tool.
- Research trends of more than 12,000 coins
- Detailed report of gains and losses
- Share tax reports with CPSs or tax offices via email
- The educational content in the form of videos and FAQs
CryptoTrader.Tax (Starts at $49)
CryptoTrader.Tax is solely dedicated to crypto taxes and it assists crypto traders and investors in the preparation and reporting of their taxes. The platform supports 10,000 coins and is trusted by thousands of users.
- Easily import data from most crypto platforms
- Download tax reports
- Multiple resources to study more about crypto
- Tools for tax-loss harvesting
Koinly (Starts at $49 per year)
Tax reporting is usually considered a cumbersome process. But with Koinly, you can report your taxes within 20 minutes. How cool is that!
Apart from tax calculation, Koinly also helps you with documentation such as IRS Form 8949 and Turbotax documents.
- Integrated with 300+ crypto wallets, exchanges, and blockchain addresses
- Syncs data from various sources
- Documentation of US and Canadian tax forms
- User-friendly interface
TaxBit (Starts at $50 per year)
The next best crypto software on our list is TaxBit, which provides you with automated technology for synchronizing your data and generates final tax returns without requiring you to do anything.
- 150 exchanges and 2000+ coins supported
- Download tax reports
- Comprehensive dashboard providing real-time asset valuation
- Tax-loss harvesting
TokenTax (Basic plan starts at $65 per year)
TokenTax allows you to calculate complex taxes for your crypto trades and report your taxes. The software’s automated capabilities make tax reporting incredibly quick and straightforward.
- Auditing report
- Most exchanges supported
- The assistance of tax professionals
The Bottom Line
As mentioned earlier, crypto tax software not only helps you file crypto taxes but also acts as an asset tracking and management tool. Now that you know the benefits and how to choose one, you can easily choose the best crypto tax software that’ll help you report your taxes on time in a fuss-free manner.
FAQs
- What is crypto tax software?
The sole purpose of crypto tax software is to make crypto taxes as simple as possible. These systems maintain track of your cryptocurrency transactions and compute any capital gains taxes as per the tax obligations in your region.
- What are the benefits of using crypto tax software?
Using crypto tax software, you’ll have the following benefits:
- Tracking your crypto trade and transaction history
- Integration with various exchanges and wallets for ease of tax filing
- Harvesting tax losses to optimize your taxation
- Including international taxes, if foreign currency is involved
- Which is the best crypto tax software?
Here is a list of the best crypto tax software of 2021:
- Accointing
- Bear.Tax
- Blockpit
- Blox
- BitcoinTaxes
- CoinTracker
- CoinTracking
- CryptoTrader.Tax
- Koinly
- TaxBit
- TokenTax
- ZenLedger
- Name the best crypto tax software that has a free plan.
Almost all the best crypto tax software has free as well as paid plans. You can choose from Accointing, CoinTracking. CoinTracker or ZenLedger’s free plans.
