You must pay taxes whether you are new to cryptocurrency trading or have been doing it for some time. It would help if you accurately computed cryptocurrency taxes as rules begin to take effect. You may add your cryptocurrency trading profit and loss and deduct expenditures using tax software for cryptocurrencies. As a result, this post lists the finest crypto tax software tools and other essential data.
what are crypto tax software tools?
Your crypto taxes are calculated using crypto tax software tools, streamlining the entire tax filing procedure. Because this software is fully set up and coded, anyone without technical expertise may use it to file their taxes.
Additionally, cryptocurrency tax software aids in keeping track of your holdings. With the help of these capabilities, you may categorize transactions into profits and losses, resulting in an automatic tax file.
What characteristics should crypto tax software tools have?
Before selecting cryptocurrency tax software for your tax preparation, you should review a few aspects. Below are a few of these characteristics:
- You should be able to smoothly upload several CSV files, data, and link APIs and wallets using the crypto tax software tools you pick.
- Consider finding tax software that guarantees the security of your actual data.
- You should be able to export files from the cryptocurrency tax software to all popular tax filing websites, including TaxAct and TurboTax.
- You ought to receive full audit support from it.
- The bitcoin tax software of choice should include options for researching cryptocurrencies and trading tools like charting.
The world’s first cryptocurrency portfolio manager and tax reporting tool is called as CoinTracking. It was introduced in 2013 to make life easier for cryptocurrency fans.
CoinTracking examines your transactions and produces real-time information on profit and loss, taxes, realized coin value, and unrealized profits, among other things.
Features of CoinsTracking
- Data from more than 110 exchanges may be imported into the CoinTracking tax program, enabling direct sync with the blockchain. Additionally, you will be able to export files in various formats, including CSV, XML, PDF, etc.
- The software assists you in creating tax reports for more than 100 nations by taking into account various elements such as income, capital gains, etc.
- You may utilize 25 customizable cryptocurrency reports and interactive charts for all your trades and coins.
- The most crucial benefit of using CoinTracking is having access to the most current values and the history of all 10,914 coins.
- Additionally, you can access all the most popular currencies’ data, trends, and analyses based on transactions and volume.
CoinTracking: is it safe?
Cointracking is secure and has been available for more than 12 years. It offers total data and API encryption that 2FA secures, enables anonymous registration, and supports 2FA.
Furthermore, the exchanges you connect to the app cannot access your withdrawal privileges. They can only view activities in your account, so even if Cointracking were to suffer a cyber assault, your money would still be secure on the exchange or wallet you kept them on.
Founded in 2018, Koinly is unquestionably among the best crypto tax software tools. It automatically keeps track of cryptocurrency transactions across your exchange accounts and wallet addresses.
Additionally, it maintains track of all original acquisition fees when you swap cryptocurrencies and detects transactions between your exchange accounts and wallets.
Additionally, the platform enables tax reporting worldwide and lets you make reports that can be downloaded as PDF files and input data via APIs, CSV files, and x/y/z pub keys.
It also provides international tax reports, Schedule D Reports, and many other reports, enabling services across different nations. These accounting systems supported include First In First Out (FIFO), Last in First Out (LIFO), Shared Pool Method, and many more.
Features of Koinly
- With the help of invested fiat and tangible ROI, customers of the Koinly tax program may monitor their cryptocurrency investments. It also provides a thorough income overview of your money-producing activities, including mining, staking, etc.
- The software offers an integrated view of your entire trading history and supports automatic data input.
- Koinly publishes trustworthy crypto tax reports and complies with all local and international regulations governing cryptocurrencies.
- The platform also provides you with a number of tools to remedy problems with your transactions, such as a double ledger system, identifying mistakes caused by erroneous or missing transactions, and auto-import verification.
Koinly is it safe?
Koinly encrypts the API keys using aes-256-gcm before keeping them, therefore using it is completely safe. Additionally, all services and data are stored on a platform that performs many layers of security checks to shield users from risks.
Access to client data is only permitted for authorized workers who need the information for work purposes. Furthermore, Koinly uses external security tools to conduct pen testing and vulnerability detection.
Koinly also conducts annual security and awareness training for its staff, has a comprehensive set of security standards, requires all staff members to sign confidentiality agreements, and does other security checks.
Accointing is a great one-stop shop for all of your cryptocurrency tax issues. The program also provides various tools that help you track and manage your crypto taxes in an easy and user-friendly way.
Additionally, Accointing offers versatile features that let you design tailored tax plans. These features include a crypto tax calculator that automatically classifies and computes your crypto tax and a crypto tracker that monitors your crypto portfolio for analysis tools.
Features of Accointing
- The procedure of calculating crypto taxes is known to be automated by accounting software.
- It easily maintains your cryptocurrency portfolio and provides a variety of insight features. You also receive an asset allocation chart recommending the next cryptocurrency asset you purchase.
- You may also automatically import data by connecting your exchanges and wallets to the platform.
- Accointing provides a detailed overview of every one of your transactions in a single report.
Accointing is it safe?
Yes, using Accointing is safe. With SSL, the entire client/server or inter-service connection is protected. To further reduce the complexity of the platform, it employs Identity identification and management with OAuth, an open-standard authorization mechanism.
You have unlimited access to export your data from the platform anytime. All your information is deleted from its databases if you want to delete your account.
The way CryptoTaxCalculator operates enables it to comprehend your tax liabilities. Additionally, their solutions accurately and conveniently identify, arrange, and track your cryptocurrency actions across hundreds of exchanges and blockchains.
Also, the platform entered the scene in 2018 with its main office in Sydney, Australia. Additionally, use the flexible tax options provided by the crypto tax software tools Calculator rather than struggling with Excel. It also combines essential chains, wallets, and exchanges and addresses trading on NFTs, DEX, and Defi.
Features of CryptoTaxCalculator
- The platform provides robust and precise tax reporting. It accurately completes all of your tax computations. Additionally, they meticulously consider all complicated circumstances, such as DEX transactions, leveraged trading, staking rewards, Defi loans, and gas costs.
- CryptoTaxCalculator thoroughly breaks out each computation. You soon understand the regulations and the precise formulas used to compute your taxes.
- The platform supports DEX and Defi trading.
- Industry-leading accountants who appreciate precise and thorough results rely on CryptoTaxCalculator.
- More than 500 exchanges are integrated, including all the essential global exchanges.
CryptoTaxCalculator is it safe?
Yes, CryptoTaxCalculator is secure and never requests private keys to your cryptocurrency wallet. Additionally, all API keys are encrypted in transit and at rest and securely kept.
The platform is also SOC 2 Type 1 certified and has security safeguards to guarantee your data protection. Again, to improve user security, CryptoTaxCalculator imposes password complexity criteria. All credentials are kept using a salt + bcrypt hash algorithm.
If you want to optimize your tax savings while quickly computing your crypto taxes, Kryptoskatt is the finest crypto tax software tools. The web3 application offers a variety of connectors to meet your needs, including support for more than 200 wallets and exchanges, 50 blockchains, 1000+ DeFi protocols, and specialized NFT help. Therefore, Kryptoskatt covers you whether you are staking or lending or whether your portfolio comprises DeFi or NFTs.
The platform’s specific functionality set the path for the Binance Incubation Program’s fifth season. Do I need to elaborate further?
Features of Kryptoskatt
- You may easily compute taxes on all of your crypto assets thanks to the platform’s support for 1000+ DeFi protocols and more than 50+ blockchains.
- You may utilize a custom CSV file to import transaction data from more than 200 exchanges and wallets, or you can auto-sync all of your data using an API.
- The Kryptoskatt app offers an advanced detection feature that can classify all of your transactions based on particular criteria to get precise analysis.
- Additionally, you receive specific DeFi and NFT dashboards for managing your portfolio of digital assets.
- It is simple to create Free crypto tax reports that are compliant with local regulations, quickly spot any mistakes, and then download them after everything checks out.
- The program uses clever tax-saving techniques, such as Tax Loss Harvesting, and applies them automatically on relevant transactions to help you save thousands on your cryptocurrency taxes.
- Kryptoskatt stands out for its extensive integration support for DeFi transactions and NFTs, which is considerably greater than any other competitive solutions now on the market. This is in addition to the app’s ease of use and friendly UI/UX.
Kryptoskatt is it safe?
Yes, using Kryptoskatt is entirely risk-free. They maintain a “pseudo-anonymous” user identity, which means the site only gathers your email address and no other personal information.
Your private and API keys with write access are not collected by them (meaning they can only read your transaction data for calculation purposes). As a result, your cryptocurrency funds are always entirely protected.
Additionally, Kryptoskatt encrypts all your data before storing it, and SSL protects all client-server interactions. The team actively offers app updates and bug fixes to maintain all security requirements.
Trading cryptocurrency necessitates paying taxes. Thus, you’ll need software that can precisely compute your capital gains and losses for the goal mentioned earlier. Because of this, cryptocurrency tax software makes the process very simple and instantly syncs several cryptocurrency exchanges and wallets to deliver tax data to you. Without a doubt, the most potent tax software for cryptocurrencies is CoinTracking and Accointing. Both pieces of crypto tax software tools manage your cryptocurrency holdings, provide precise tax returns, and support a variety of exchanges and wallets. Furthermore, both platforms are excellent for inexperienced and experienced traders.