For the broader world generally and cryptocurrency specifically, 2021 marks the beginning of a replacement decade. quite 10 years have passed since the launch of Bitcoin because the world’s first cryptocurrency and, with literally thousands of the latest digital coins now in circulation, a subsequent decade of crypto is nearly bound to see a full accounting of the asset’s long-term viability.
Despite the surge of activity crypto has seen through the 2010s or perhaps due to it cryptocurrency tracking and accounting are playing a continuing game of catch-up with the remainder of the industry.
However, with a variety of national governments now paying closer scrutiny to the liabilities of those digital transactions, more cryptocurrency software platforms have arisen to fill the necessity for reliable and comprehensive cryptocurrency accounting.
This guide shows you all the simplest crypto tax software on the market in 2021. We’ve tried all of them, and everyone appeals to a special quiet person. This guide will tell you which of them is best for your situation to save lots of time and money this tax year.
How To Find The Best Crypto Tax Software
If you had any cryptocurrency transactions during 2020, crypto tax software is an essential tool for you to calculate your cryptocurrency gains and losses. Cryptocurrency exchanges are different compared to traditional brokerages like TD Ameritrade or JPMorgan.
At the end of the year, these brokerage houses issue a consolidated Form 1099 (see picture below) listing all your annual proceeds, cost basis & gains/losses arising from stock transactions. However, crypto exchanges like Coinbase & Gemini do not issue such forms at year-end. They may issue a Form 1099-K listing all your gross transactions but this will not be useful in preparing your tax return. Therefore, the burden of properly calculating gains and losses to be reported on the tax return falls with you.
List of Top Cryptocurrency Tax Software For 2021
#1. CryptoTrader.Tax
Calculate Your Crypto Taxes in 20 Minutes. Instant Crypto Tax Forms. Support For All Exchanges and 2000+ Cryptocurrencies. CryptoTrader.Tax is the simplest and most reliable crypto tax software and calculator. CryptoTrader.The tax takes away the pain of preparing your Bitcoin and crypto taxes. Simply connect your exchanges, import trades, and download your tax report in minutes.
#2. TaxBits
TaxBit connects the consumer and enterprise cryptocurrency tax experiences. Whether you are a platform that needs to issue 1099s, or a user that needs to report their taxes, TaxBit’s cryptocurrency tax software unifies the process. We connect the processes of enterprises producing and issuing 1099s with those of consumers transforming their 1099s and other data into completed tax reports that are ready to file. TaxBit Consumer and TaxBit Enterprise interact so that users have a seamless and unified tax experience across all of the platforms that they use. Our APIs make it easy to automatically bring in your data. Whether you are interacting with our tax center suites on an exchange or using TaxBit Consumer, you will see the real-time tax impact of your transactions across any exchange you trade on. TaxBit is the leading provider of Form 1099 in the cryptocurrency space. Regulatory agencies use TaxBit to assist with cryptocurrency tax matters.
#3. ACCOINTING.com
Analyze your portfolio, set up alerts, and get real-time insights. Get an overview of the market, and track coins in your watchlist. File your crypto taxes in just a few clicks! Accounting provides an insightful dashboard, available on both mobile and desktop to keep track of your performance and transactions in real-time with an amazing user experience. We provide you with the easiest way to connect your wallets or exchanges through API or CSV. Over 300 wallets and exchanges are supported in the platform via mobile or desktop. It only takes 5 clicks to get your tax report, which is customized to your country. Select your country to get more information. Review the performance of the overall crypto market, research trending tokens and add them to your watchlist.
#4. Koinly
Koinly is a tax solution for cryptocurrency investors and accountants. Anyone who owns multiple exchange accounts or wallets knows the pains when it comes to declaring taxes. Koinly was built to solve this very problem - by integrating with all major blockchains and exchanges such as Coinbase, Binance, Bittrex, and CEX.io, Koinly reduces crypto tax reporting to a few minutes of work. Simply connect your exchange accounts / public addresses and let Koinly figure out your capital gains. Your final tax report is presented in a format that is accepted by your tax agency, making it easy to print & file. Alternatively, import our report into a tax filing software like TurboTax, TaxACT, or Xero. Koinly calculates your cryptocurrency taxes and helps you reduce them for next year. Simple & Reliable. Add your exchange accounts via API or CSV files and connect your blockchain wallets using public addresses.
#5. Tokentax
TokenTax’s first version was created by co-founder Alex Miles back in 2017. This initial product imported data directly from Coinbase, and it won the Product Hunt Global Hackathon. Soon after, co-founder Zac McClure joined.
Alex was a product designer for Readmill and Dropbox before he founded TokenTax. Zac worked in impact capital, nonprofit corporate and legal structuring, investment banking, and as a mathematics teacher.
In 2019, TokenTax acquired Crypto CPAs, a cryptocurrency tax accounting firm, bringing in-house our CPA Andrew Perlin.
Now, TokenTax calculates cryptocurrency taxes and provides tax and accounting services for thousands of crypto traders and investors around the world.
#6. Coin Tracking
CoinTracking analyzes your trades and generates real-time reports on profit and loss, the value of your coins, realized and unrealized gains, reports for taxes, and much more. With the prices for 9041 coins and assets, you’ll always have a complete overview. Whether you just started investing in digital currencies or are already trading like a pro, CoinTracking can track all your transactions in real time. New to CoinTracking? Our tutorials explain all the functions and settings of CoinTracking in 16 short videos. Interactive charts for trades and coins. Profit/loss & Audit reports.
Realized and unrealized gains. All transactions are on one single page. Easy import from 70+ exchanges. Automatic import via APIs. Direct sync with the blockchain. Export in Excel, PDF, CSV, XML & JSON. Capital Gains, Income, Mining, etc. 12 Tax methods (FIFO, LIFO, AVCO...). Prepared for accountants and tax office. Adjustable parameters for all countries.
#7. CryptoPrep
Confidently address your crypto tax needs with CryptoPrep, powered by EY, the trusted authority in tax. Preparing your crypto taxes is complex, but with EY CryptoPrep, your taxes are calculated with institutional-grade methods and follow the latest guidance from the IRS so you can be confident your 8949 is highly accurate. EY CryptoPrep is powered by EY, the global leader in tax. Fortune 500 corporations have been trusting EY as the authority in tax for over 100 years. So you can trust EY will help you successfully navigate the complex and unclear crypto tax space, and know that your crypto taxes are fully backed by the EY brand.
EY CryptoPrep you have a step-by-step understanding of your crypto tax process and an output of your capital gain/loss calculations so you can understand how your liability was reached and have the peace of mind that no detail was missed. Let us take your crypto taxes off your hands.
#8. BlockSentry
The tax environment for cryptocurrencies is changing fast. Stay safe in an increasingly regulated market with our end-to-end compliance solution. You don’t have to be an accounting expert. Gain real-time insights into your trading performance with beautiful data visualizations. Our patent-pending technology categorizes transactions for you and automatically recognizes transfers between accounts, saving you time & money. Gain real-time insights into your trading across all of your exchanges with a detailed analysis of your gains and losses for individual currencies as well as broader portfolio trends.
BlockSentry uses advanced A.I. technology to auto-fill your tax form, and automatically identify transfers between your accounts. This will save you hours and help you keep a long-term cost basis, ensuring you pay the least in taxes.
#9. Coinpanda
The world’s most reliable and easy-to-use tax solution for cryptocurrencies. File your tax return in under 20 minutes. Learn how to reduce your taxes for next year. Have you bought or sold crypto on different exchanges? Lost track of all your wallet addresses? Not sure how to report your taxes? We built Coinpanda out of our frustration, so we understand your situation very well! Our support team has 5+ years of experience with crypto taxes and can answer all your questions.
By selling coins at a loss you will reduce your total capital gains. This means you can pay less tax next year. Coinpanda helps you minimize your taxes and maximize profits! Save time and download your crypto tax reports in under 20 minutes. Import your transactions and download tax reports with the click of a button. Coinpanda supports all popular exchanges and wallets. Track your entire cryptocurrency portfolio with our powerful platform built for serious investors and traders.
Choose the Best Crypto Accounting Services
If you are looking for quality crypto accounting services We at Rayvat Accounting provide a variety of taxation and accounting services that are tailored to our client's specific needs, including cryptocurrency investment reconciliations (capital gain and loss report), tax planning, tax compliance, and tax return preparation. We leverage professional experience and knowledge to supply creative tax advice and guidance for businesses and individuals. Our team of crypto accountants helps successfully navigate the complex crypto tax landscape.
Kindly contact us today for more details and a specific quote.