The process of trying to find a high-quality tax calculator that will provide your desired experience can be a long and difficult one, especially when there are only so many products available on the market and many factors to take into consideration.
Whether you are looking for a product that will help you handle your crypto taxes on your own or you are looking for a solution that can act as a supplement to using a crypto tax accountant, having the right information regarding the products out there makes the process of choosing a crypto tax calculator much easier.
To give you some help along the way, here is a review of the top 3 cryptocurrency tax calculators: Koinly, Cointracking, and Bitcoin.tax!
Koinly is a crypto tax calculator that goes above and beyond for its users. Featuring support in over 100 countries with the ability to import information from and sync with over 300 exchanges, 10 blockchains, and 6000 cryptocurrencies, Koinly is the perfect option for traders and investors who operate on a wide variety of platforms and with various digital assets.
Boasting a quick sign up, users only need to upload their information to begin. Once all of your trade data has been uploaded, the program will begin to analyze your transactions to determine what you owe and where you can claim losses based on various accounting methods found within your country. Users can also go through their transactions to mark them as purchases, incomes, and lost or stolen coins.
Although it is a tax calculator, there are additional features that make it a desirable choice for everyone. These features include a trade calculator that tells you how your trades will impact your taxes before you make them, an audit report feature that produces fully-compliant audit logs, and easy exporting to major tax software providers like Xero, TaxAct, and TurboTax.
With affordable annual pricing plans and quick reporting, Koinly is the product to turn to if you use cryptocurrency often.
From its website to its calculator, CoinTracking is focused on getting taxes done and getting them done efficiently. While it does not have as many features as the first option on this list, it still has an impressive number of options when it comes to getting your taxes done.
With the ability to import information from over 70 exchanges (and impressive support for closed exchanges such as Mt. Gox), to sync directly with blockchains to provide real-time, historical, and forecasted price data, and the ability to import through various documents, CoinTracking makes it easy for you to get your tax reports done.
CoinTracking offers an impressive 12 different reporting methods so that you are sure to be covered regardless of where you are reporting your taxes from. This platform also helps you find realized and unrealized capital gains, produces audit reports, and creates an interactive chart that shows you all of your trade history.
Besides these key features, CoinTracking is also heavily focused on user security, which can be seen in their SSL certification and encryption, their lack of access to your exchange information, and 2-factor authentication.
Put simply, if you are looking for a plain, no nonsense tax calculator, CoinTracking is an excellent program to use.
Targeted at beginners who are not as knowledgeable about cryptocurrency tax guidelines, this beginner-friendly tax calculator is perfect for those who are just diving into the crypto space and want to not only calculate their taxes but learn more about crypto and taxation as a whole.
As Bitcoin Taxes lays out in their website, all you have to do to begin is to import transaction data from one of their supported exchanges (which include big names such as Coinbase, Gemini, and Poloniex), import your spending data, import your income data, and import your mining data, and let the calculator do its work.
Once you’ve entered all your information, the program will produce four reports, which include:
- An income report that details all of your earned crypto over the year
- The capital gains report which shows you your gains and losses over the year
- A donation report that shows you the cost-basis for money given to others
- A closing report that shows you your overall profit
As with the previous two calculators, you can easily import your reports directly to TurboTax or TaxAct. The only downside to this program is that it can only produce a Form 8949 and it doesn’t come with as many features as the two other calculators.
That said, if you are just starting to trade crypto, Bitcoin Taxes is a great way to get your taxes done and to learn more about the market so that you can make better decisions in the future!
If you are looking for a tax calculator to help you with your 2020 crypto taxes, the good news is that there are high-quality solutions out there. To ensure that you get your taxes done right, consider using one of the three tax calculators from the list above.