Taxes are arguably one of the most unenjoyable tasks of owning cryptocurrency. Between calculating gains and losses, reaching out to previous exchanges, and trying to make sure you don’t miss any information, it can quickly become overwhelming.
Fortunately, there is a solution: crypto tax software.
This software helps automate the process and makes things easier — but what are some of the best options?
In this post, we’ll explore three of the top crypto tax software platforms on the market in 2021. Whether you’re an individual investor or a small business owner handling dozens of transactions each day, these platforms offer great solutions for all kinds of users.
Read on to find out which platform is right for you!
What Is Crypto Tax Software Crypto?
Tax software is an invaluable tool for cryptocurrency investors, allowing them to easily track and report their digital asset earnings.
CryptoTrader.Tax (now CoinLedger), Koinly, and Ledgible are three of the top options for crypto tax software platforms.
CryptoTrader.Tax offers a variety of features to make filing taxes easier, including direct connections to over 20 exchanges like Coinbase, Bittrex, and Gemini.
They also offer free portfolio tracking, an official TurboTax partnership, and international support.
Koinly has a clean easy-to-use interface that makes it great for beginners. It connects to all major exchanges and wallets and offers a free plan where users can import all their data in one click.
Ledgible is another excellent option that helps investors track their crypto investments and their tax implications with ease. This software connects to hundreds of exchanges and coins, as well as 10+ NFT platforms, making it extremely versatile.
All three of these crypto tax software platforms provide important services to help cryptocurrency investors keep track of their profits and losses while staying compliant with the law.
They allow users to easily generate filled-in IRS forms such as 8949 or Schedule D and have comprehensive reporting capabilities so users can get the most out of their taxes without any hassle or stress.
With so many great options available, everyone should be able to find a solution that meets their needs when it comes to managing cryptocurrency taxes this year!
Pros And Cons Of Crypto Tax Software Crypto
Tax software is a revolutionary way to simplify the often complex process of filing cryptocurrency taxes. With the right crypto tax software, investors can automate their tax reports and save time and money.
Here are some pros and cons of using crypto tax software:
Pros:
-Integration with popular wallets and exchanges, allowing users to easily import data from multiple sources into one platform.
- Tax-loss harvesting capabilities help users minimize their taxable capital gains.
- Competitive pricing with multiple tiers, makes it easier for users to find the best fit for their needs.
- User-friendly interface makes it easy for even first-timers to navigate the system.
- Excellent customer support helps users quickly resolve any issues they may have.
Cons:
- Cannot directly file the tax return, which adds an extra step to the process.
- Limited customer support for lower-priced tiers may make it difficult for some users to get assistance when needed.
- The cost of some plans can be expensive if you have a large portfolio or many trades in a given year.
Conclusion
Crypto tax software is an invaluable tool for crypto traders and investors who need to stay on top of their taxes. It can help you calculate your gains or losses, generate necessary forms, and provide helpful reports so that filing your crypto taxes is a breeze. We’ve outlined the three best crypto tax software platforms currently available on the market; each platform has both strengths and weaknesses to consider. Ultimately, it’s up to you what platform best fits your needs and preferences. With whichever option you choose, make sure to do your own research, take advantage of its features, and stay informed about the ever-changing crypto tax environment so that you can maximize your returns and remain compliant with local/federal law.
Via https://medium.com/@crypto_bits/finding-the-best-crypto-tax-software-in-2023-bf3370f3cb87?source=rss-e787423ae68d------2
source https://cryptobits1.weebly.com/blog/finding-the-best-crypto-tax-software-in-2023
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