While the market is certainly looking a bit bearish at the moment, the massive gains that many saw take place from the beginning towards the middle of the year resulted in some profitable trades. As with all forms of profit, however, you are inevitably going to have to report this income to your government.
Fortunately, as with other sources of income and assets, there are programs out there that can make it easier for you to calculate and report your taxes. However, not all of these programs are necessarily reliable or up-to-date. When you’re reporting on assets as sensitive as cryptocurrencies, being accurate in your filing is important.
If you’re looking for crypto tax software that can either help you file by yourself or with the help of a crypto CPA, take a look at the five recommendations below for the best cryptocurrency tax software for 2019.
Koinly tops our list as one of the best cryptocurrency tax calculators out there, mainly due to the sheer number of features and the level of support that they provide for their customers.
What can you expect from Koinly? With support for over 100 countries and the ability to import information from and sync with over 300 exchanges, 10 blockchains, and 6000 different cryptocurrency assets, this platform is perfect for absolutely anyone of any experience level, although it is especially helpful for those who trade extensively.
Having a quick sign-up and importing process, Koinly quickly analyzes user data to produce a comprehensive capital gains report and show where money can be saved by claiming losses, which is done using the multiple accounting methods provided through their service. The program also allows users to mark your transactions by types, such as income or lost funds.
If everything looks good, users can then download their choice of the tax form, which includes major forms such as Schedule D, the FBAR, the K4, and Form 8949. Reports can then be exported to major tax software such as TaxAct, Xero, and TurboTax.
Along with your crypto tax filing, Koinly has portfolio tracking features as well, which helps traders to better understand how their trades will affect them before they follow through on a trade. If you’re in need of a platform that not only helps you calculate your current taxes but your future taxes as well, Koinly is an excellent option to turn to.
Simply put, Koinly is a feature-packed, support-based platform that focuses on covering anyone who comes to them for help whether it be fo crypto portfolio tracking or crypto tax reports.
Another great portfolio tracker and tax filing software, CoinTracking is a tax calculator made for all breeds of investors and traders.
With support for an impressive 7080 coins and over 70 exchanges, including some of which have been closed down for years (Mt. Gox), those who trade popular and obscure crypto assets are sure to find the tax help they need here.
CoinTracking produces interactive charts that analyze past transactions and provide users with improved insight into their gains, losses, and the historical performance of their assets. Featuring 12 different accounting methods, traders will be able to download relevant tax forms for their country with ease.
Beyond the basic capital gains reports and tax forms, the system also gives Bitcoin price forecasting for those who actively trade and focuses on security to protect all those who sign up for their services.
For those who need a safe, reliable tax platform, CoinTracking gets the job done.
Not to be confused with the software option above, CoinTracker is a quick, efficient tax calculator and excellent portfolio tracker for those who are looking for both capabilities.
Speaking to its tax filing capabilities, CoinTracker supports over 300 wallets and exchanges as well as over 2,500 cryptocurrency assets, making it easy to import information to the platform, regardless of how many exchanges or assets someone may use. As you can see from the above image, they are fully updated on their crypto guidelines as well.
The program then analyzes the information to calculate gains and losses, for which they offer full support in the U.K., the U.S., Australia, and Canada (with partial support in most other countries). More specifically, they are able to produce Form 8949 and Schedule D as well as foreign forms like the FBAR and the FATCA.
This information can also be exported to TaxAct and TurboTax, which makes it simple for you to add your crypto reports to your regular taxes.
Along with the crypto tax reports, the software keeps track of your financial information on a regular basis, synchronizing your transactional data from your linked exchanges and providing features such as fee tracking and margin trading. With a full overview of your portfolio, you can see and monitor all of your assets in one place.
If both a portfolio tracker and a tax calculator are a must for you, CoinTracker seamlessly delivers both products at once.
A major change from the previous tax software listed above, Bitcoin.tax is not made for the experienced but rather those who are new to cryptocurrency.
With an easy-to-use interface, users can quickly import crypto transactions from major exchanges like Bitfinex, Coinbase, and Kraken as well as income, mining, and spending data from supported wallets or directly from addresses. Bitcoin Taxes then produces a report for your capital gains, income, donations, and overall profitability over the course of the year.
Once your report has been prepared, it is ready to export to other software like TaxAct and TurboTax. It’s important to keep in mind, however, that this program is more limited than other platforms, which means that the only form you can produce is the Form 8949.
While you don’t have all of the features here that you would get with other tax programs, Bitcoin Taxes is one option that you can use if it is your first time reporting crypto taxes and you don’t have a complicated trade history over the past year.
Another simple option for those who don’t need to worry about dealing with a complicated tax year, BearTax makes filing your crypto taxes simple.
With support for those in the U.S., India, Japan, Australia, and Canada, BearTax allows you to connect with your exchanges directly or import Excel documents to prove your transaction history, making it easy for any user to get started, regardless of their exchange or wallet source.
Once all data is uploaded to the system, BearTax then automatically scans through the information to detect related transactions so that you don’t have to. If there are any issues, you can quickly match any transactions on your own to complete the process. A gain-loss report will then be produced for the user, along with the relevant tax forms and audit reports.
Again, while this is not a program that provides all of the features seen in some of the first options on this list, this is a great stripped down software that helps you get your crypto taxes done right.
2020 is coming quickly, which means that you should get prepared for crypto taxes as soon as possible. To help you find the best software for your needs, consider the five major cryptocurrency tax software providers listed above! If you just want to get your taxes done fast, Koinly is definitely the top pick due to its design, features, and simplicity.
Source From : Coindoo News