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7 Crypto Tax Software You Should Consider For Cryptocurrency Taxes

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Tax authorities worldwide try to benefit from the wealth in cryptocurrency with varying degrees of success. Countries like the UK, Israel, Denmark, Switzerland, Argentina, and Bulgaria all have crypto taxation laws in different classifications. However, other countries allow their citizens to trade cryptocurrency with zero taxation. These include Portugal, Germany, Singapore, Malta, and Malaysia. 

While countries have made milestones in cryptocurrency taxation, understanding the process is still complicated. Some guidelines are vague or sophisticated, which frustrates crypto users who wish to file taxes. In addition, most countries’ guidelines on tax implications in trading, selling and buying cryptocurrency need to be clarified. 

Despite vague and complicated guidelines on crypto taxation, users face legal action if they fail to comply. The Internal Revenue Service in the US takes a hardline stance on tax defaulters who own or trade in cryptocurrency. To avoid ending up on the wrong side of the law, here are seven crypto taxation software you can use to file your taxes. 

What is Crypto Tax Software?

Crypto tax software is a third-party data analysis platform that aggregates all your crypto transaction data. The program then compiles a transactions report and calculates all your gains and losses per specific tax laws. In addition, users can purchase a yearly subscription and link the software to their wallets and crypto exchanges. Several programs perform this function, each with its strengths and shortcomings: 

Koinly

Koinly was founded in 2018 by Robin Singh, a former engineer and an alumnus of the University of Manchester. The software promises to make it much easier to file your crypto taxes with several features. These features include portfolio tracking, data imports, tax reports, and troubleshooting. 

Koinly has four pricing categories. The free version only includes essential features, and the Hodler package is designed for those getting started. The latter packaging costs $49 per tax year and supports 300 transactions. The software also includes a trader package for those more advanced in crypto trading, going for $99 per tax year, and supports 3,000 transactions. Lastly, it includes an Oracle package for $179 per tax year, supporting up to 10,000 transactions. 

The platform currently supports 73 wallets, over 6000 cryptocurrencies, 339 exchanges, and more than eight blockchains. 

Accointing

Suitable for both traders and companies, Accointing is a friendly tax platform that ensures taxes are filed according to regulations. Users can get their tax reports ready for submission with simple parameter settings and import their transaction data. In addition, the portfolio feature allows users to track the growth of their assets. The software also provides market trends, price alerts, and short and long-term investment overviews. 

There are three payment plans: 

  • Starter Tax Solution is priced at $50, supporting up to 250 transactions. 
  • The Advanced Tax Solution supports up to 5,000 transactions at $130 per year. 
  • Finally, the Professional Tax Solution is priced at $260 annually and supports unlimited transactions. 

Cointracking

Some of the main features of Cointracking include personal portfolio analysis, transaction imports, customer support, and adequate security. In addition, it supports over 70 exchanges and is adjustable to different taxing parameters. It also verifies the transaction records to correct any duplicates and missing ones. 

There are four pricing packages on this platform: 

  • The free package supports up to 200 transactions and limited features. 
  • The pro plan costs $10 a month and supports up to 3,500 transactions and standard software features. 
  • The expert plan supports up to 20,000 and costs $15.49 per month. 
  • Finally, the unlimited plan is priced at $50 and offers unlimited transactions and all software features. 

Bitcoin Taxes

This platform represents a relatively cheaper crypto tax reporting and computing option. It is suitable for traders, tax professionals, businesses, and investors. Its more robust features include speedy service, customer satisfaction, and uploading transaction data for analysis. Bitcoin tax also connects users with professional accountants in case there is a need for extra help. It also supports various countries making it adjustable to specific parameters. 

You can choose from four pricing packages if you want to sign up. The free package supports up to 200 transactions. The premium plan supports 1,000 transactions at $39.95 per tax year. The extra premium plan is priced at $49.95 per tax year and supports 5,000 transactions, while the deluxe program supports up to 10,000 transactions at $59.95 per tax year. 

Blox

It is automated, precise, and efficient. Blox boasts great features such as auto-tracking and syncing transaction data and CPA financial tools. Besides, it has a real-time dashboard to review portfolios, transaction control, bookkeeping, and security for customers. It serves crypto companies, executives, accounting firms, and asset managers. 

Blox has three major pricing plans. The business plan offers 24-hour customer service and up to $20 million in assets under management. The second plan is Enterprise supporting up to $60 million in assets. The third is a custom plan that supports unlimited assets and customized software features. 

TaxBit

This popular platform is created by certified public accountants and tax lawyers, making it convenient. It allows for full audits and optimized taxes to thousands of users. It supports over 4,200 digital currencies, equities, and commodities. It also ensures proper regulation according to tax laws and provides portfolio analysis. 

Taxbit offers three payment plans: 

  • A basic plan priced at $50 per year supporting up to 250 transactions
  • A plus plan supporting up to 2,500 transactions and is priced at $175 per tax year
  • A pro plan is priced at $500 annually and supports up to 25,000 transactions and unlimited exchanges. 

How to Choose the Best Crypto Tax Software

Like many other products, you must be careful when choosing crypto tax software. If you don’t know what to be on the lookout for, here are some of the things you need to consider

Legitimacy and Credibility

Ensure that the software you choose follows tax laws and regulations to avoid penalties. Conduct your due diligence, especially on the team behind the software, to determine whether they have the experience required for crypto taxation. 

Price

Check the pricing of each software before you pick one, and make sure it is worth the price you’ll pay. Take advantage of those that allow free accounts if you meet the criteria. If you have high volumes of transactions, be prepared to pay more for efficient tracking and tax reporting. 

Integration and Bandwidth

Choose a software with a format that works for you. Some of the programs may require you to edit transaction history to comply. Bandwidth is essential since high-volume transactions may cause a system to crash because it cannot handle it. 

Conclusion

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Most of the software mentioned above have similar features, pricing plans, and services, but picking one may be daunting. Unlimited plans may be the way for companies and firms, given the number of transactions they conduct annually. Individuals may settle for cheaper schemes that fit their number of transactions to avoid wasting money. Additionally, one needs to ensure that the software they pick follows local regulations depending on where they are. It is essential to check reviews by other users to determine which platform to use. Finally, anyone trading or owning cryptocurrency and assets should use tax software to prevent legal consequences and ease the process.

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