The Top Cryptocurrency Tax Platforms To Use For Your Crypto Taxes
It’s no secret that cryptocurrencies have become a lucrative form of investment. As such, governments across the globe have updated their taxation policies to get a piece of the rapidly growing sector. In most countries with implemented digital asset taxation, cryptocurrencies such as Bitcoin are treated as property for tax purposes and not as a digital currency. This means that capital gains and losses reporting rules that apply to other forms of properties such as real estate, bonds, and stocks also apply to digital assets. However, traders are not taxed for just holding cryptos. Instead, they are taxed on the income generated from their crypto investments.
Unlike traditional brokerage houses, which issue a consolidated Form 1099 at the end of every year for easier tax filing, crypto exchanges and wallets don’t issue such forms or provide comprehensive data on a cost basis, gains/losses, and annual proceeds arising from crypto transactions. This makes tracking crypto transactions for the aim of filing taxes quite difficult. Besides, there is a lack of standardization regarding regulatory taxation frameworks, further complicating the process.
Crypto tax platforms, also referred to as crypto tax software tools, come in handy to enable cryptocurrency traders to reconcile their cryptocurrency losses and gains and determine how much they owe their respective governments in terms of crypto gains. Here are the top crypto tax platforms in 2021.
4 Top Crypto Tax Platforms
ACCOINTING.com bills itself as “the easiest and fastest platform to track and report taxes on Bitcoin and other cryptocurrencies.” It’s the leading crypto tax platform for data import, tax report generation, UX/UI design, interaction, and tracking & management features. The crypto taxation platform can connect to over 4500 digital currencies and more than 300 crypto wallets and exchanges worldwide. ACCOINTING.com offers outstanding tax computing and filing services in line with regulations in different countries, making it suitable for small crypto traders and established crypto companies.
ACCOINTING.com allows crypto traders to get their tax reports customized to their country’s legislation in just five clicks. To generate a detailed tax report, users first need to import their transactions from wallets and exchanges using the API integration. Alternatively, users can upload their crypto transaction history on the platform. Once imported/uploaded, users classify the transactions to enable the platform to calculate gains and losses. After a few parameter settings based on a country’s jurisdiction, the tax report is ready and downloaded in CSV and PDF format.
ACCOINTING.com also features an automatic portfolio tracker available for both mobile and desktop. The tracker enables users to keep track of their performance and transactions in real-time and receive price alerts, view short and long-term holdings, get real-time market trends notifications, and more, all under a single, intuitive dashboard.
ACCOINTING.com supports other tax tools and brokers such as OSL, Bitcoin Suisse, Delta, and Cointracking. It charges fair pricing and has excellent customer support via a series of channels, including Email, Reddit, and Telegram. The platform has been featured on several media platforms, including Yahoo Finance, Bloomberg, Hackernoon, Bitcoin2Go, and Seeking Alpha.
ACCOINTING.com offers three payment plans: the Starter Tax Solution, the Advanced Tax Solution, and the Professional Tax Solution.
- Starter Tax Solution– It’s priced at $50 per year and includes support for up to 250 transactions and access to most of the platform’s features.
- Advanced Tax Solution– Charges at $130 per annum, offers support for up to 5,000 transactions and unlocks many other features.
- Professional Tax Solution– Charged at $260 per year and offers unlimited transaction support, access to all features, plus an advanced holding period.
For more information, visit their website: https://accointing.com/.
CoinTracking is another excellent crypto tax software that offers crypto traders regulatory compliant and efficient tax reporting. The platform has over 700,000 active users with over 750 CPA and corporate clients. It has more than 11 years of historical data with over $4.3 billion in total value locked in all portfolios involving 7333 digital currencies.
CoinTracking generates a detailed tax report by analyzing users’ imported transaction data involving real-time profits, coin value, losses, gains, taxes owed, etc. The platform features a personal analysis feature, encompassing a series of interactive trade and coin charts for trades, audit reports for profit/losses with a run-down of reported and unreported gains.
CoinTracking allows the importation of transaction data from over 70 crypto exchanges via either API integration or direct blockchain network sync. Exports can be done in several formats, including PDF, CSX, JSON, Excel, and XML. The platform is compatible with different tax jurisdictions and can compute owed taxes using over ten methods, including AVCO, FIFO, and LIFO.
The platform is ideal for crypto companies and offers professional help services, including crypto tax education, data review, and sharing. Professional help is provided through collaboration with several CPAs and tax experts to ensure accurate tax reporting.
Other notable features on the platform include API encryption, trade backup restoration, two-factor authentication, personal portfolio analysis, tax declarations, coin charts & trends, and outstanding professional customer support.
CoinTracking offers four pricing plans and also accepts Bitcoin payments.
- Free plan– Support 200 transactions only with limited reporting on tax/capital gains, personal exports, coin tracking, and CSV imports.
- Pro plan– This plan is priced at $10 per month and supports over 3,500 transactions, and comes with all other features on the platform, excluding customer support and prioritized transactions.
- Expert plan– Priced at $15.49 per month, this plan supports up to 20,000 transactions and supports other features offered in the Pro plan.
- Unlimited plan– The unlimited plan is priced at $50 per month and supports unlimited transactions and prioritized transactions and customer support.
Koinly is a high-end crypto tax software that allows crypto traders to easily file their crypto taxes via an innovative transaction importing and tax calculating tool. The platform is available in over 20 countries and supports over 300 crypto exchanges, over eight blockchain networks, and nine other crypto services such as BlockFi, Nexo, and Pursue.io.
Koinly allows users to import transaction data from wallets and exchanges via a smart transfer matching API, which employs artificial intelligence to detect transfers that are made between your personal crypto wallets for accurate tax calculations. The platform supports the importation of several crypto data sets, including margin trading, futures trading, staking, lending, and DeFi.
When data has been imported, the platform generates a reliable cryptocurrency tax report to download documents such as 8949 IRS tax forms available. The platform allows users to preview their gains and taxes for free and generate tax reports for various jurisdictions, including Germany, Sweden, UK, and Canada. Besides, crypto transaction data export to other platforms such as TaxAct, TurboTax, and H&R is also supported.
In addition to enabling crypto traders to file their taxes, Koinly also allows users to track their digital assets across exchanges and wallets, plus get an overview of their capital gains and losses for any tax year using the portfolio analysis tool. Other features on the platform include capital gain previews, comprehensive crypto tax reporting to pass tax audits, and error reconciliation tools to easily find potential flaws in the tax report.
Koinly offer four pricing package as below:
- Free Pricing Package– The free package supports 10 000 transactions and 50 exchanges and wallets. However, it lacks several features, including international tax reports, audit reports, tax documents such as schedule D forms and 8949 forms, and lack of export to other platforms such as TurboTax.
- HODLER plan– Priced at $79 per annum, this package supports unlimited exchanges/wallets with 300 transactions. It also restricts some of the Koinly features such as custom reports, priority support, and review and import assistance.
- TRADER plan– This package is priced at $179 per annum and supports over 3,000 transactions. Users enjoy unlimited wallets and exchanges as well as all other Koinly services.
- ORACLE plan– It’s priced at $399 per year and supports 10,000 transactions, unlimited wallets/exchanges, priority support, plus all other Koinly features and services.
CryptoTrader.Tax by CoinLedger is a popular choice among crypto traders. It offers fast and efficient calculations on capital gains, losses, and owed taxes.
CryptoTrader.Tax features an intuitive tax filer where users must first import their crypto transactions data via an API import tool or upload the trade history file. In addition to providing the transaction records, users must provide their sources of crypto income for the tax year. The platform can calculate crypto gains involving alternative sources, including forks, staking, airdrops, gifts, and mining.
Users are given the option to choose their preferred tax form and calculation method. The downloadable tax file report encompasses a series of documents, including the 8949 IRS form, income report, an audit trail report, a short/long-term sales report, the TurboTax online direct import, and the end-of-year positions report.
The tax report can be downloaded and imported into TaxAct and TurboTax. The platform prepares tax reports using various tax standards, notably LIFO and FIFO standards. It also provides a tax-loss harvesting feature and also includes a corporates-oriented service, which offers companies the necessary tools for easier tax filing on behalf of clients.
CryptoTrader.Tax offers four pricing plans as listed below:
- Hobbyist– Priced at $49 per year, this plan encompasses support for 100 trades and many features, including IRS forms, report previews, live chat support, cross-platform integration, tax-loss harvesting, FIFO/LIFO computing, etc.
- Day Trader– Costs slightly over $99 per year and supports up to 1,500 transactions and the features highlighted above.
- High Volume Trader– This package is priced at $119 per annum and supports 5,000 traders and unlimited access to features alongside priority support.
- Unlimited– Charged at $299 per tax season and offers clients unlimited trades and access to other tools and services.
As more and more countries implement crypto tax regulations, crypto tax platforms have found widespread usability in the crypto space. These platforms assist crypto traders in seamlessly filing their tax returns by reconciling transactions from exchanges/wallets to produce detailed tax reports compatible with the IRS standards and other tax standards across the globe. Crypto tax platforms will enable you to file your crypto taxes seamlessly and avoid the hefty fines and consequences of tax evasions.
Below are some graphs illustrating how the different crypto tax tools compare to each other: