Doing your taxes normally can be very overwhelming and when you bring crypto into the mix, it can get much more confusing. To avoid that confusion, I go through 9 reporting software services and then share with you what I found to be the best and the cheapest.
The main features you want to look for are:
• They charge you based on the transactions, not per tax year. If you are going back several years, this will be outrageously expensive.
• Ideally you want a platform that you can easily import a CSV or connect to an exchange API without having to add everything manually into a CSV import template.
• Ideally you want a platform that aids you with tax loss harvesting.
• Ideally you want a platform that helps you track fees and includes them as capital losses incurred.
• Ensure it covers any lesser-known exchanges you might use or that those transactions can be easily uploaded.
• Ensure your country is included in its reporting system.
Of course, there are other things to look for, but these are just a handful of key things to look out for to ensure a good experience using any crypto tax reporting software. The main issue I ran into was that they didn’t have the API I needed or didn’t easily import data from other exchanges and required you to do lots of work converting the data into their format. While all services also want you to fill in some of the gaps, if you’re like me and don’t want to hunt down everything, you want something easy. Given it doesn’t make a huge difference in what I pay, I’d rather just let the service make assumptions and fill in gaps for me.
Top 3 Tax Reporting Platforms:
Koinly – Let’s you calculate and view everything for free, but you cannot get your tax reports unless you pay. It’s very expensive as you have to pay per tax year from $49 to $279 covering transactions from 100 to 10,000+. The reason this is so good is that it shows you how easy it is. It’s by far the easiest because they can interpret many of the exchanges CSV exports of your transactions rather than have you change everything to their format. Covers each year within the transaction limit so it can get very expensive if you made a lot of transactions in one year. However, I used coupon code TC30 for 30% off every order at least, but I still spent about $500. Recommended for individual reports because once it’s paid for you can always come back and make amendments and less ideal for reporting across multiple years. - https://koinly.io/?via=1BED9CF9&utm_source=friend
CryptoTaxCalculator – You can generate reports for every tax year with your one-year subscription which would make it very affordable, however, assuming you do this every year, it will add up. From $49 to $299 ranging from 100 transactions to 100,000. When I tested it a year ago I had a lot of issues, but trying again recently it was pretty smooth. I’d say if you have to do many years all at once, this could be the best option, however, if you need reports in the future or want to amend something and your subscription has run out, then you’d have to renew it versus buying the transactions and reports separately. If I had done all my reporting here, I could have saved a couple hundred dollars. Recommended for people looking to report out multiple years at once. - https://cryptotaxcalculator.io/
Cointracker – Lets you do up to 1000 transactions for free from Coinsquare only. Charges $279 for 1,000 transactions per tax year and beyond that are priced individually. Basically, it’s overpriced, but if you only Coinsquare, you could do it for free with a low amount of transactions. Recommended only for Coinsquare users. - https://www.cointracker.io/
Read the rest to see the other platforms I reviewed on my various blogging platforms.
What are your thoughts on taxes? Are you overwhelmed by crypto taxes? Did this help? Let me know what you think about this in the comments below and don’t forget to subscribe!
*Disclaimer: This is not financial advice and is purely for entertainment purposes. What you see, hear, or read is my personal opinion, and any statements made are based on my views and should not be misconstrued as fact. My crypto portfolio may or may not be simulated*
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