Curious about how the transactions in cryptocurrency works? If you invest in cryptos or intend to do so, then you might be interested in whether the government charges taxes here as well? Since the governments have a tax on everything. Why would any income via cryptocurrency be an exception? With the increase in the number of people who use crypto, there is a need for useful tools, such as a Bitcoin tax calculator.
It is worth noting that tax enforcements on cryptocurrencies can and will be done under abstract properties. The math of calculating how much tax you owe to the state has been made easier now with a host of crypto tax calculator tools available online. So, you just need to file your tax and avoid any future defaults.
Trustworthy Bitcoin Tax Calculator Tools
Here is the list of the best crypto tax calculators that have unique features and offer quality services.
BitcoinTaxes was launched in 2014 and used as the primary tax calculator, especially at that time. Since then, the application has incorporated significant updates in terms of its vast collaboration with multiple major wallets and exchanges. Along with providing you with the most accurate transaction ledger, it has the ease of importing transactions directly from the address and blockchain. This tool will not only help you file your taxes but will also give you a detailed analysis of your capital gains and losses. You can also compare using different cost-based methodologies, such LIFO, FIFO, like-kind treatment, and more to check the accuracy.
BitcoinTaxes enhances the user experience and builds on trust due to the two excellent services they offer:
- Complete Tax Preparation Services: where learned agents will help you strategize your crypto investments;
- Audit Defense Services: In association with tax attorneys, they will help you with your open IRS audits.
BitcoinTaxes has also collaborated with TurboTax to provide the users with the swiftest and accurate tax transactions completed, keeping the latest tax laws by hand. You can also save up to 15% of your total calculated tax as a tax refund if you use this tool.
Cointracking is one of the most feature-rich platforms to consider. This tool relies heavily on the foundations of completely doing away with the requirement of excel sheets. It is also used to quantify gains and losses, which even then was a very cumbersome task. Since then, the tool has functioned with many interesting expansions in direct imports, wallet imports, and legacy support.
These features are a big part of what this tool can offer:
- Analyzing your transactions becomes easy with Cointracking because it produces a cumulative report with all your gains and losses;
- You can import your exchanges from the 110+ options available. Moreover, it allows automatic imports from API;
- This tool should be your choice for tax declaration because it systematically generates crypto taxes for 100+ countries;
- It uses the twelve prime tax methods, such as FIFO and LIFO;
- It also provides a chart that describes the latest price trends of all the coins by trade or by volume.
This Bitcoin Tax Calculator can be your absolute pick for all your needs that caters to the domain of cryptocurrency. It is safe and secure due to two-factor authentication and will never ask you to furnish your trade exchanges. Whether you are a crypto trader or own a crypto company, using this tool will change your life because you get almost everything statistically under one umbrella.
3. Lukka Essentials
Formerly known as the LibraTax app, it is another tax calculating tool launched in 2014 in California. It is one of the most trusted tools recognized by crypto traders. This crypto tax calculator keeps track of all the crypto transactions made by the user in the past or present and reconciles them with the digital currency’s current value.
It is worth mentioning that it has tied up with over 3700+ cryptocurrencies, including the major ones – Bitcoin, Litecoin, Ripple, and Ethereum. It can also retrieve transactions from all the well-known wallets that store cryptocurrencies.
Lukka Essentials is the one-stop-destination for any and all of your trading decision-making requirements. Here are some important things to consider for a crypto trader:
- Unlike the other software, there is no transaction cap limit of 100 for users; it is free;
- If you want to assess your trades, you can select your file containing the trading history or just import via API;
- Lukka is the first software provider in the crypto asset field to be attested with SOC 1 Type 1 and SOC 2 Type 2 certification. So, you can rest assured that your taxes are in the right hands.
TokenTax is one of the most popular applications used by crypto traders. It was mentioned as the best one by Forbes and Bloomberg. Token Tax has collaborated with all the major crypto exchanges, so you can use any platform, and your data will be in the safe hands of TokenTax.
These are some of the most important things to note:
- There is a “Tax Loss Harvesting Tool.” By using this feature, you can save a lot of your money if you hold assets at a loss. It will strategically plan out how you can roll out them in the market;
- You can also download all the necessary forms you might need to file your tax returns like FATCA, 8949, TurboTax, and more;
- It has a specialized team of CPA’s and customer representatives ready on the board who will help you out to get rid of a simple lag or a complex trading mechanism.
There can be multiple features and updates that can make a tool skyrocket in the crypto agency, but software that entails the user with a friendly experience lasts longer. If you are an intelligent investor who keeps track of all the potential movements in the crypto world, you would always choose TokenTax for your tax requirements.
Zenledger comes with a simple and easy-to-use interface using which the whole process will be smoother than ever. This software generates a single report with all your trading activities and gives you an account for all your capital gains, donations, income, and closing reports. This tool strictly follows the IRS format so that all the process is as per the guidelines towards filing the IRS tax return documents. Zenledger, over the years, has been celebrated by Forbes, Wall Street Journal, and a lot of other leading media sources. Zenledger is everything that a Cryptocurrency Tax Calculator tool should ideally be like:
- Better pricing as compared to all the competitors;
- All your transactions are simplified in one spreadsheet;
- Customer care assistance is available 24*7 over chat, call, and email to help you through any snag;
- Presence of “Tax Loss Harvesting Tool” that will help you to assess all your losses and strategize an easy sell-off;
- Two-factor authentication for the limitless overall security of all your assets;
- Zenledger is also the official partner with TurboTax, so you can just fill out all the documents and directly upload them to TurboTax via Zenledger.
With 13M+ transactions, Zenledger is the crypto tax calculator for you.
Although many options are available to all cryptocurrency traders, choosing the best Bitcoin tax calculator can be difficult. So, these are some of the most trusted tools you can use. Filing your taxes will become more accessible than ever before if you just choose the right tool that serves your areas of interest. Ensure that you file all your taxes on time connected to all your abstract assets while strictly following all the IRS guidelines and avoid any future trouble.
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