10 Best Crypto Tax Software | All You Need to Know

Cryptocurrency has become popular quickly because of its high-profit potential and frequently appreciated values. Regardless of how interesting and lucrative cryptocurrency trading can be, calculating your profits and loss and recording transactions for tax payment can be nerve-racking.

However, using crypto tax software as your crypto tax calculator relieves you from errors and time consumption associated with the manual calculation of crypto tax.

This article will enlighten you on the 10 best crypto tax software to calculate your profit and loss and avoid calculation errors.

Why Do I Need A Crypto Tax Softare?
10 Best Crypto Tax Software in 2023
Frequent Asked Questions (FAQs)
- Conclusion
References
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Why Do I Need A Crypto Tax Softare?

Tax software allows you to manage, track and calculate the profits of your exchange operation and crypto transaction for tax payments. Without cryoto tax software, completing your crypto taxes yourself may be a long and arduous process.

Every time you sell, trade, or otherwise dispose of cryptocurrency, you are realizing a taxable event. For many investors and traders, especially high volume traders, this makes reporting crypto taxes a challenge. However, crypto tax software helps in three major ways:

1. Organizes and compiles your data

Every exchange reports purchases, trades, and sales in different formats. But for your tax reporting, this data needs to be standardized, organized, and sorted.

This can be tedious if you need to track hundreds or even thousands of trades from multiple exchanges. Crypto accounting software automatically imports data from exchanges and keeps them in one ongoing record.

2. Establishes the price of each digital asset

To report your crypto taxes, you need to establish the fiat cost basis of each asset, as well as the fiat value equivalent of all sales, trades, or other transactions.

Cryptocurrency accounting software can handle this process automatically by tracking down the fiat value prices per coin on the date of each transaction.

3. Calculates your capital gains and loss

After standardizing your tax data, purchases and sales need to be paired via an accounting method like FIFO or LIFO to calculate your capital gains or losses. More complicated situations, like DeFi loans or margin trading, will require special attention.

Crypto and bitcoin tax software will automatically use all the IRS-accepted accounting methods to link your cost basis with corresponding trades to calculate the capital gains or losses for the current tax year. It can also reconcile previous years’ data if your tax professsional determines it needs to be amended.

4. Formats capital gains calculations correctly

Capital gains and losses and their associated dates and cost basis must be formatted into a tax report. Crypto tax tools take the data and calculations and automatically construct standardized tax forms, like Form 8949 for U.S. filers or international tax reports for filers in many other countries.

5. Tracks your current year gain/loss and tax liability

It’s important to keep track of your gains and losses throughout the year to prepare to pay your taxes come tax season. You’ll want to know what tax liability you have incurred and what unrealized gains or losses may occur by the end of the tax year. You can also use crypto accounting software to harvest your losses to reduce your taxes.

Many tax software has been invented, but users’ best Crypto software reviews have been collated for our readers.

10 Best Crypto Tax Software in 2023

Here is the list of the best crypto tax software in 2023.

List of the Best Crypto Tax Software in 2023:

CryptoTrader.tax
Koinly
TokenTax
Accointing
ZenLedger
Cointracking
Bear.Tax
TaxBit
Blox
CoinTracker

1. CryptoTrader.tax

This is one of the best crypto tax software that offers incredible value. It is a crypto tax calculator trusted by over a hundred traders and supports over ten thousand cryptocurrencies. When using CryptoTrader.tax, you will be given stepwise assistance when making transactions and importation that may attract a tax charge.

After each crypto transaction or importation, your tax form will automatically be published on a professional dashboard where you can view and download it.

Its features are unique; therefore, it’s the first on our list

Features of CryptoTrader.tax

It gives a complete audit support
It supports different currencies around the world
The dashboard permits clients to all accounts while aiding the reconciliation of forfeiting transactions.
It has a tax-loss harvesting tool
There are various resources provided to enlarge your knowledge of Cryptocurrencies.
It supports the importation of transaction data from various platforms.
If you’re either an accountant or tax professional, you can easily find essential pieces of information for your taxation charges by utilizing the crypto taxes 101 guides..

CryptoTrader.tax has one of the best crypto tax software reviews. Therefore, earning interest, staking and trading have gotten better by the use of CryptoTrader.tax to calculate your taxes with relief.

Price: Price ranges from $49 to $299. And they offer a 14-day refund guarantee.

2. Koinly

if you are looking for the best crypto tax software to engage easily with your exchanges and wallets, go for Koinly. With this software, you can vividly see an account for your invested money across various platforms.

Affirming taxes can be stressful and painstaking if you have multiple exchange accounts and wallets. But when you use Koinly as your crypto tax calculator, your exchange account will be connected and Koinly will figure out your capital profits. Then, your tax will be presented in a format that is acceptable by all tax agencies.

Features of Koinly

Data can be automatically synchronized from all sources.
You can connect with 14 blockchain addresses 74 wallets, and 353 crypto exchanges.
It is fast and affordable, calculates crypto taxes, and helps you reduce taxes for the next year in every possible way.
It can track the portfolio across your account, showing features of gain and loss disadvantages.

Price: Price ranges from $49 to $279

3. TokenTax

TokenTax is popular for its accounting, offering an easy integration significance. It is a crypto tax calculator perfect for calculating complicated taxes for your tax filing with an automation feature that makes reporting easy to handle and very simple.

This software allows the collection of crypto trading data easily while making crypto tax returns very easy to file.

It is important to note that TokenTax enables connection to all major crypto exchanges, and it is the best crypto tax calculator that can perform this function.

Features of TokenTax

Here are the features of TokenTax software:

Tracking of your trading activity
Generating your tax reports
Optimizing year-end position by utilizing the tax-loss harvesting tool
Connection to exchanges
It can stimulate international taxes if foreign coins are involved.

TokenTax is the best tax software geared for crypto tax liabilities, particularly working with the current popular exchange in the market.

Price: Price ranges from $65 to $2500 tax per year

4. Accointing

Accointing is the best crypto software to get a summary of the market and trail coins on your watchlist. It has a remarkable user experience and an insightful dashboard accessible on both desktop and mobile to enable you to trail your transactions and performance.

Features of Accointing

It enables you to explore the crypto market
The tax reports formulated can be downloaded and tendered for tax filing.
Tax loss can be harvested.
Portfolio analysis tools can make you know better moves in the future
Exportation of your trades in a reasonable format.

It has one of the best crypto software reviews, and its free version is useful for novice traders, with only 25 transactions report.

Price: Price ranges from $199 to $299, with $79 for a year license

5. ZenLedger

ZenLedger is the best crypto tax software focusing on tax accounting and Management. It assists tax professionals and crypto investors file crypto tax and financial analysis. This is done by delivering a digital workflow to automate, optimize, and simplify accounting and tax processes.

With ZenLedger crypto tax software, you can aggregate trade information across many tokens, wallets, and exchanges into a single dashboard. And its crypto tax calculator functions with the task of finalizing tax.

Features of ZenLedger

Possesses collective accounting report and tax-loss acquiring tool.
It has the best Crypto software reviews on the calculation of crypto profit and loss
Allows the integration with Turbotax

ZenLedger is a unique crypto tax calculator and has one of the best crypto tax reviews

Price: Price ranges from $0 to $399 per year

6. CoinTracking

CoinTracking is the best crypto software to track your real realized and unrealized profits, account taxes and generate reports on profit and loss. If you’re either a novice in trading or a professional trader, CoinTracking will track all your transactions.

It has almost 1000 users with one of the best crypto software reviews. Its tax reporting software is top-notch, giving users the utmost satisfaction.

Features of CoinTracking

Provides you with summaries on profits and loss
Support the importation of your data from more than 100 exchanges
You are provided with tools to survey the trends in coins for trading
Provides tutorials through videos and FAQs
You can easily export your tax report to tax offices or CPSs

Price: Price ranges between $10 per month to $54.99

7. Bear.Tax

If you’re looking for the best crypto software that is easy to use and can efficiently evaluate profits and file taxes on capital gains, Bear.Tax software is worth considering.

Its cryptocurrency exchange is incorporated through API exchange and the upload of files. It can correspond buys and sells, survey missing sources, estimate your gain-loss information, and strengthen trades.

Features of Bear.Tax

It can make an accurate calculation of your profit and loss.
Allows you to receive your trade from the crypto exchange you use.
It gives an audit trail and sales report, with much more benefits.

This crypto software is endorsed and affordable.

Price: Price ranges from $10 to $200 for a year

Related Post: 15 Best Bitcoin Mining Software In 2023

8. TaxBit

TaxBit relates the tax experience of the enterprise and consumer. It is the best crypto tax software for unifying tax reports and issuing 1099s. There is an interaction between the TaxBit Enterprise and TaxBit consumers to ensure you have a suitable experience across the platforms you use.

When using TaxBit, you wouldn’t have to do anything because TaxBit gives automation technology that automatically synchronizes your data and gives you a decisive tax report.

Features of TaxBit

It is best at offering a unified tax ordeal
It has a portfolio performance analysis and tax loss harvesting feature
You can easily export your transaction summary
Assets balances, unrealized profit and loss, and tax positions are expressly displayed on the dashboard.

When making a crypto tax software comparison, note that TaxBit offers a unified experience.

Price: Price ranges from $50 to $500 each year.

9. Blox

Blox can manage and track your crypto portfolio in a precise and automated way. It is the best crypto tax software for multi-purpose functions. You can enjoy a lot of special features on this software some of which are;

Features of Blox

Provision of monetary tools for CPA or other tax experts can be exported via CSV files.
Synchronizing auto-tracking data from different exchanges and wallet
Bookkeeping for establishing economic summaries and historical transactions

Pricing ranges from $40 to $450

10: CoinTracker

This is one of the crypto tax software that can trail your portfolio, saving you money through a tax-loss harvesting tool.

Your tax report can be exported to TaxAct or TurboTax

Features of CoinTracker

It calculates your capital gain
It supports more than 2,500 cryptocurrencies

Price: The price range is between $59 to $199

Frequent Asked Questions (FAQs)

Is cryptocurrency taxable?

Yes, it is taxable.

What is the percentage of tax to be paid on profit made in cryptocurrency?

Taxes on long-term gains range from 0% to 20%, while taxes on short-term gain ranges from 10% to 37%.

Is it compulsory to pay taxes on the short-term crypto gain?

Yes, because cryptocurrencies are considered property for federal income tax.

How can I avoid paying taxes on my crypto in a year?

You can avoid paying taxes on your cryptocurrency by not selling crypto in a year.

Do I have to document every and purchase of cryptocurrency?

Yes, it is recommended.

Conclusion

People are getting richer by simply trading and investing in cryptocurrencies. However, cryptocurrency is considered property by the federal government, thus attracting tax. Selecting suitable tax software can be tricky, so we collected the best crypto tax software in 2023 so that you can choose the appropriate tax software that suits your purpose.