As cryptocurrency trades continue to become more streamlined, the need for filing taxes based on income also rises. After buying and selling cryptos got legalized in 2021, we saw many software companies come up with digital solutions for filing crypto taxes, for example, Koinly.
But if you’re new to these programs and you tried to consult a Koinly tax software review, a lot of it must have gone over your head. Don’t worry, as today we’re going to show you some of the best digital solutions for crypto taxes and do a short review of them. We’re going to do it in a way even a beginner would understand. So, let us begin.
CoinLedger
One of the reasons that you would ever want a digital solution in the first place for your crypto taxes is because of the automation. And while many programs don’t allow you to do this, CoinLedger isn’t one of them.
It supports integration with some of the most popular online crypto wallets, which allows it to gain access to transaction histories to calculate capital gains and file taxes based on your income and owned NFTs. Everything is then filled out on a tax form, which you can download and use with just a single click.
CoinLedger supports up to 2,000 different cryptocurrencies. So, no matter how uncommon your altcoin is, you can bet that CoinLedger will be able to handle it easily.
It also has a free version that offers all of the basic functionalities. For more advanced operations, you might need to get one of the paid plans.
Koinly
If you still haven’t managed to understand anything from the review, leave it up to us to show you what you can get with this amazing program.
If you have different wallets or accounts on different crypto exchanges, you don’t need to worry about manually importing all of the information into Koinly. The software can connect with 353 different exchanges and supports integration with 74 different wallets.
This means that all of the info surrounding your transactions can easily be transferred to the program for doing your taxes. But beyond that, using all of the data in real time, you can get an overview of your past and present transactions and trades. It’s helpful if you want to track profit, loss, and tax liabilities.
TokenTax
If you’re ready to take off the training wheels, then you might like what TokenTax has to offer. It’s able to calculate your taxes based on the transactions on your crypto exchanges to make it easier to file them and thanks to the automation feature, which is a highlight of the program, you can easily generate a tax report in no time at all.
One of the main features that makes it stand apart from everything else is the tax-loss harvesting too. If you have clients with tax liabilities, this tool identifies them and lets you cut them off as you see fit.
If you need someone to calculate your taxes for you, the platform also offers you the option to hire crypto assistants, who advise you or generate the tax report for you if you wish.
While there are many good aspects, one of the biggest drawbacks is that there’s no free version. If you want to enjoy the benefits of TokenTax, you will need to pay for it. The “Basic” package starts at $65/year. But this, too, comes with limited features, so it might not be the right fit for everyone.
Wrapping Up
If the software we’ve suggested doesn’t meet your preferences, that’s perfectly okay as you might be aware of an alternative application that offers the precise features you desire. If you opt for a different program, be sure to review feedback and conduct thorough research before committing your time and finances.