Highest Rated Crypto Tax Software
Buying cryptocurrencies is currently one of the most popular investment trends. However, the process of filing taxes for those cryptocurrencies could be complicated and time-consuming. And, regardless of how long you’ve been in crypto, you’ll have to pay taxes. Fortunately, cryptocurrency tax software such as CoinLedger may be a quick solution to all of your tax issues.
What Is CoinLedger?
CoinLedger’s headquarters are in Kansas City, Missouri. David Kemmerer, Lucas Wyland, and Mitchell Cookson founded the company, formerly known as CryptoTrader. Tax, in 2018. CryptoTrader was initially created by the three co-founders. The tax was designed as an automated trading system that took advantage of price arbitrage between various cryptocurrency exchanges. This experience taught them about the difficulties associated with crypto tax reporting.
In the absence of any tools or software to automate their crypto tax reporting, the founders decided to create their own solution. And this is where CoinLedger comes into play.
CoinLedger is now a leading tax reporting platform for users of cryptocurrency, DeFi, and NFT. The following products offered by this software may help crypto traders on their way:
- Assisting taxpayers with the preparation and filing of income tax returns
- Portfolio tracking is a free service that allows you to track the movements of your cryptocurrency holdings.
- A collection of educational articles, videos, and eBooks on cryptocurrency tools and taxes.
Services by Coinledger
A collection of educational articles, videos, and eBooks on cryptocurrency tools and taxes.
Cryptocurrency can help people all over the world have a better financial future.
Cryptocurrencies, on the other hand, are currently dispersed across various wallets, exchanges, and protocols. This makes it difficult for investors to keep track of their investments and pay their taxes.
However, the services provided by CoinLedger may assist investors in navigating the new crypto-economy. This software allows cryptocurrency users to understand their holdings and prepare relevant tax forms in a matter of minutes. So, let’s take a look at some of CoinLedger’s offerings.
1. Report on the audit trail
CoinLedger’s tax report includes an audit trail linked to each step for calculating capital gains for your records. It details every taxable event that occurred.
2. Internal Revenue Service form 8949
CoinLedger generates and fills out this required tax form, which you must attach to your tax return. This report details your short-term and long-term cryptocurrency investment gains.
3. Report on short and long-term gains
All of your trading profits and losses are summarised in the short and long-term gains report. For each transaction, you’ll be able to see the calculated cost basis, proceeds, and net gain/loss.
4. Report on Cryptocurrency Earnings
You can see the fiat value of all incoming transactions in your income report throughout the tax year. This report is divided into three sections to make completing your entire return as simple as possible: gifts, mining, and income.
5. Direct import into TurboTax
Import your capital gains and losses into TurboTax or other tax software directly. After you finish your report, CoinLedger generates a CSV file that you can import directly into TurboTax.
6. Report on Tax-Loss Harvesting
Tax-loss harvesting can help you offset and reduce capital gains. The tax loss harvesting report lists the cryptocurrencies with the greatest potential for tax savings, which can help you plan your future trades.
7. NFT tax preparation software
When it comes to NFT transactions, you should be aware that CoinLedger will calculate your capital gains simply by entering your wallet address. It makes no difference how many wallets you use with this software. You will have them all in one place.
Do not bother manually reporting your NFT taxes because the process may be difficult. You can file your taxes in less than a minute using tax software like CoinLedger, which works with Ethereum and NFT marketplaces.
Tax-loss harvesting can lower a cryptocurrency trader’s taxable capital gains or even increase a trader’s tax refund. Understanding this process, as well as crypto tax rates, can be very beneficial in mastering the cryptocurrency market.
So, here’s a quick rundown of the tax-loss harvesting procedure:
- Connecting wallets and exchanges can be done automatically or via a spreadsheet.
- Make your tax report.
- Open the tax-loss harvesting tab and go through the list of harvesting opportunities.
- You can trade or sell cryptocurrencies on your preferred exchange once you’ve determined which ones offer the best tax benefits.
- Import the transaction(s) into CoinLedger and rerun your tax reports to see how much the transaction(s) cost.
Pricing at CoinLedger
The CoinLedger pricing plan is designed around the crypto transactions that users make each tax season. As a result, there is a pricing plan for everyone, from casual crypto investors to high-end traders.
You can begin with a free tax preview for any of the plans. It allows you to free import your cryptocurrency trading data and earnings.
However, if you want to begin downloading and using the reports on a regular basis, you must subscribe to and pay for one of the plans.
There are four pricing plans that are purchased once per tax season:
- $49 for a hobbyist — 100 transactions
- $99 Day Trader — 1,500 Transactions
- High Transaction Volume $199 — 5,000 Transactions
- $299 for an unlimited number of transactions
It’s also critical to understand the refund policy. Every user who is unhappy with CoinLedger’s services is entitled to a two-week money-back guarantee. This only applies to reports made within the last 14 days.
Integrations with CoinLedger
Using CoinLedger makes it simple to calculate your taxes. CoinLedger also allows users to track and monitor their cryptocurrency activity, as it integrates directly with hundreds of exchanges, wallets, blockchains, and NFT platforms.
Let’s take a look at some of the 300+ exchanges that CoinLedger supports:
CoinLedger has direct integration support for the following wallets across multiple blockchains:
- Trust Wallet
- Curve Finance
- Pancake Swap
While researching customer experience reports for this CoinLedger review, we discovered that users have a positive and optimistic outlook on this company.
Let us go over some of the features that users appreciate about CoinLedger:
- The package for unlimited transactions is the most reasonable, with a low price and excellent services.
- Outstanding customer service — very helpful and knowledgeable, quick service in answering all of your questions
- The numerous integrations
- Simple auto-importing, as well as explicit instructions for manually importing as a backup
- Excellent products and simple-to-use software
Meanwhile, some users are reporting technical difficulties. In response to these complaints, CoinLedger has offered to assist in resolving them.
CoinLedger may be useful in calculating your crypto taxes in addition to providing you with the necessary reports to file with the IRS. Furthermore, the platform could be integrated with over 300+ cryptocurrency exchange platforms.
Finally, CoinLedger is one of the simplest and most user-friendly software. This software, with its outstanding and brilliant customer service, could be a valuable asset for all active and high-end crypto traders.