Which is the best cryptocurrency tax calculator? What are its features? Is there a free calculator that you can use for all your crypto tax calculation needs? Welcome to today’s post, in which I will present information that I believe will be useful to you as a cryptocurrency owner. Read on to find out more.
More and more people are entering the cryptocurrency space by the day, lured by the benefits that these decentralized currencies present. We have already seen people rise to millionaire and billionaire status simply by buying and selling cryptos. It can, unfortunately, be quite hard to successfully determine how much taxes you owe the taxman after trading in cryptos.
If you are a day trader, for instance, you do hundreds or thousands of transactions per year, and attempting to keep a record of the profits and losses you make annually may be quite challenging. Even for large companies that trade on behalf of other clients, the calculation of taxes may be a very cumbersome task.
You can, however, turn to a reliable cryptocurrency tax calculator software, to simplify things for you. A good crypto tax calculator has the capability to sync transactions across all your wallets and cryptocurrency exchanges and can calculate all your capital gains and taxes. It can also enable you to access tax reports that you can utilize during the filing of your taxes.
The Best Cryptocurrency Tax Calculator –Available options
Koinly – The Best Option based on Ease of Use
Koinly is one of the best cryptocurrency tax calculators around based on the ease of use. This software easily connects with the users’ wallets, exchanges, blockchain addresses, as well as crypto services, to reveal the amount of money has one across those platforms.
- It can connect to over 350 cryptocurrency exchanges, over 70 crypto exchanges, and over 10 blockchain addresses.
- Can track your crypto asset holdings across all your assets and accounts, and enable you to view the real-time details of your profits & losses, as well as your tax liabilities.
- Can automatically sync data from several sources.
- Allows you to export transaction data to other tax software such as TurboTax and TaxAct.
How much do you pay to use Koinly?
The amount of money you pay to use this tax calculator depends on your needs, as illustrated below:
- Newbies/beginners – $49 per tax year
- Hodler – $99 per tax year
- Trader- $179 per tax year
- Pro – $279 per tax year
TokenTax – The best option for easy integration with a variety of cryptocurrency exchanges
This is a tax software that’s purposely designed for the computation of complicated taxes in situations where one has several crypto exchanges. It is highly automated to ensure that even those simple computations appear very easy to deal with.
Top features of this software include:
- Sufficient audit assistance
- Supports every type of crypto exchange
- Tax-loss harvesting
- In complicated situations, you can get help from a cryptocurrency accountant
- Calculates and files taxes
- Capable of integrating automatically with all exchanges to gather necessary data.
Fees charged for using TokenTax (tax reporting)
- Basic plan – $65 per tax year
- Premium – $199 per tax year
- Pro – $799 per tax year
- VIP – $2,500 per tax year
ZenLedger – Best plan for those looking for crypto tax calculator with free plan
ZenLedger is a popular cryptocurrency tax software that supports integration with over 400 exchanges, and over 30 DeFi Protocols. It currently has more than 15,000 users, who are mostly investors and tax professionals.
Features of ZenLedger
- Has tax-loss harvesting tools
- Unified accounting
- Allows for integration with TurboTax
- It can calculate cryptocurrency profits and losses simply by accessing your transaction history.
Fees charged for using ZenLedger
- Free plan – $0
- Starter plan – $49 per year
- Premium – $149 per year
- Executive – $399 per year
Accointing – Best for those looking for tax software with the best portfolio analysis tools
Accointing exists as a widely-recognized cryptocurrency tracking and tax reporting software that offers one the tools with which they can track the market, analyze their portfolio, and get the tax reports necessary for the filing of taxes.
The main feature of Accointing
- It has tools to analyze one’s portfolio (so that one can make better moves in the future).
- Tax-loss harvesting
- Allows investors to explore the cryptocurrency market.
- It can calculate one’s gains and losses
- Creates tax reports for you, so that you can download them and use them in the filing of taxes
Fees charged for using this tax software
- Trader – $199
- Hobbyist – $79
- Free Tax – $0
- Pro – $299
TaxBit – Best option for those looking for a unified tax experience
TaxBit was created by CPAs and tax attorneys, with the objective of helping anyone who would like to turn their 1099 into cryptocurrency tax reports and to help enterprises issue their 1099s effectively.
Top features of TaxBit
- Tax-loss harvesting supported
- Has portfolio performance analysis features
- Powerful dashboard displaying investors’ asset balances, their unrealized profits & losses, as well as their tax position.
- Capability to export transaction reports
Fees charged for using TaxBit
- Basic – $50 per year
- Prus – $175 per year
- Pro – $500 per year
As you can see, there are several cryptocurrency tax calculators that you can rely on, depending on what you are looking for. As opposed to trying to compute taxes on your own, you can try out the option that best meets your needs, as you continue enjoying the proceeds from your trades. Talking of which, have you added cryptocurrencies to your retirement investment portfolio? You can get started by looking at what the recommended companies below have to offer, as you prepare to open your crypto IRA.
That you for making it to the end of this article on which the best cryptocurrency tax calculator is. I hope that you found it helpful and that you will now know which option to turn to. If you have any questions regarding today’s topic, let me know by dropping them in the comments section so that I can back to you ASAP.
I wish you well,
Eric, Investor and Team Member at Gold Retired!