For many crypto investors, keeping track of capital gains and losses is an uphill task, as they engage in several profitable transactions monthly. Crypto trading skyrocketed in 2021, with several newcomers obtaining and trading cryptocurrency.
Like real estate and stocks, the IRS categorizes cryptocurrency holdings as property. However, your crypto is not taxable at all times. Only events like selling cryptocurrency can incur a taxable charge. So many investors incur losses and gains due to the dynamic nature of the crypto market.
As an investor, getting the best tax management tools is necessary to ensure you are abreast of your tax obligations. Several crypto tax software tools are now available to manage your crypto taxes, track gains and losses and automate several other processes. Here’s how we picked the best software products for this roundup. Our Top Picks For The Best Crypto Tax Software
> CoinLedger – Overall Best, Crypto Tax Software, Editor’s Pick
CoinTracking – Most Recommended Software For Real-Time Tracking
ZenLedger – Suitable For Novice Crypto Traders
TokenTax – Top Rated Tax Software For DeFi, NFT, And Crypto
#1. CoinLedger – Overall Best, Crypto Tax Software, Editor’s Pick
CoinLedger is the industry’s most efficient tax software provider. Formerly known as Cryprotrader, this top-notch tool is a one-stop shop for both newbie crypto traders and old-timers. This platform, founded in 2018, supports over 10,000 crptocurrencies and lets users easily import their wallets and exchanges to the software.
It also has a feature that tracks the cost basis of your coins during their transfer through different wallets. The software also performs automatic classifications of all your transactions and allows you to also manually classify them.
An excess of $70 billion worth of transactions have been processed by CoinLedger, and it boasts a customer base of over 300,000. With CoinLedger, users can view their capital gains and losses for free. Users can also easily download their tax reports with this software after making payments. CoinLedger offers tax-saving opportunities for its users and claims to have saved 50 million dollars through tax-loss harvesting. With this software, you can upload your tax reports to your preferred tax platform, like TurboTax.
CoinLedger has a round-the-clock support team that attends to customer issues and treats them promptly. The customer support team is accessible by email and chat. Its customer-first policies and efficient service has earned this service a top spot on this list. CoinLedger has 4.8 out of 5 stars on TrustPilot, with many users hailing the service as the best crypto tax software. With CoinLedger, NFT traders can also import their NFT trades to calculate taxes and track profits and losses.
To sign up for CoinLedger, you’ll simply need to add your personal information, verify your account, select your region and local currency and import your transaction history. CoinLedger has a tiered structure for payment based on your volume of transactions. Highlights
Export Reports To Providers : With CoinLedger, users can export and upload their tax reports to supported providers such as TaxAct and TurboTax. This feature makes this software convenient if you want to export your reports to your chosen tax platform.
Tax Saving Opportunities Available : CoinLedger claims to have helped save 50 million dollars for customers through its tax-loss harvesting. This feature affords users the opportunity to reduce their taxable capital gains across their portfolios.
Free Capital Gains/Loss Review : Before downloading your tax report, you can view your capital gains and/or losses on CoinLedger. This free feature is great as it helps you know your gains and losses before purchasing your tax resort.
Excellent Customer Reviews : CoinLedger has near-perfect customer ratings on all major review sites online. On TrustPilot, they have a 4.8/5 star rating from thousands of users. CoinLedger utilizes end-to-end encryption to ensure user data is secure on the site.
International Tax Reports : With CoinLedger, you can use your tax reports to fill international tax forms in the USA, Canada, and Australia. Pros
Suitable for crypto newbies and pros View capital gains and losses for free Several packages available Free trial period available Tax saving opportunities available NFT taxing available Cons No crypto payment option No free use for hobbyists #2. CoinTracking – Most Recommended Software For Real-Time Tracking Thousands of cryptocurrency traders today use CoinTracking as a tax Software and portfolio tracker. This software tracks your transactions across your portfolio in real time. CoinTracking can integrate with nearly 80 cryptocurrency exchange platforms.With CoinTracking, it doesn’t matter which wallet or exchange […]
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