Doing your taxes normally can be very overwhelming and when you bring crypto into the mix, it can get much more confusing. To avoid that confusion, I go through 9 reporting software services and then share with you what I found to be the best and the cheapest.
The main features you want to look for are:
• They charge you based on the transactions, not per tax year. If you are going back several years, this will be outrageously expensive.
• Ideally you want a platform that you can easily import a CSV or connect to an exchange API without having to add everything manually into a CSV import template.
• Ideally you want a platform that aids you with tax loss harvesting.
• Ideally you want a platform that helps you track fees and includes them as capital losses incurred.
• Ensure it covers any lesser known exchanges you might use or that those transactions can be easily uploaded.
• Ensure your country is included in their reporting system.
Of course, there are other things to look for, but this is just a handful of key things to look out for to ensure a good experience using any crypto tax reporting software. The main issue I ran into was that they didn’t have the API I needed or didn’t easily import data from other exchanges and required you to do lots of work converting the data into their format. While all services also want you to fill in some of the gaps, if you’re like me and don’t want to hunt down everything, you want something easy. Given it doesn’t make a huge difference in what I pay, I’d rather just let the service make assumptions and fill in gaps for me.
Top 3 Tax Reporting Platforms:
Koinly – Let’s you calculate and view everything for free, but you cannot get your tax reports unless you pay. It’s very expensive as you have to pay per tax year from $49 to $279 covering transactions from 100 to 10,000+. The reason this is so good is because it shows you how easy it is. It’s by far the easiest because they can interpret many of the exchanges CSV exports of your transactions rather than have you change everything to their format. Covers each year within the transaction limit so it can get very expensive if you made a lot of transactions in one year. However, I used coupon code TC30 for 30% off every order at least, but I still spent about $500. Recommended for individual reports because once it’s paid for you can always come back and make amendments and less ideal for reporting across multiple years. - https://koinly.io/?via=1BED9CF9&utm_source=friend
CryptoTaxCalculator – You can generate reports for every tax year with your one year subscription which would make it very affordable however, assuming you do this every year, it will add up. From $49 to $299 ranging from 100 transactions to 100,000. When I tested it a year ago I had a lot of issues, but trying again recently it was pretty smooth. I’d say if you have to do many years all at once, this could be the best option, however if you need reports in the future or want to amend something and your subscription has run out, then you’d have to renew it versus buying the transactions and reports separately. If I had done all my reporting here, I could have saved a couple hundred dollars. Recommended for people looking to report out multiple years at once. - https://cryptotaxcalculator.io/
Cointracker – Lets you do up to 1000 transactions for free from Coinsquare only. Charges $279 for 1,000 transactions per tax year and beyond that is priced individually. Basically it’s overpriced, but if you only Coinsquare, you could do it for free with a low amount of transactions. Recommended only for Coinsquare users. - https://www.cointracker.io/
These other platforms I reviewed:
CoinTracking – Lets you do up to 200 transactions for free. The cheapest to use with 3,500 transactions for $120.99 for the year, but is has the least intuitive UI and it’s very cumbersome. It also doesn’t support nearly as many exchanges as some of the others and when I added my excel imports they weren’t accepted. It is fairly affordable though it’s going to be more cost effective to use something like CryptoTaxCalculator. The other main issue here is that you’ll have to take the data from excel exports and input it into their spreadsheets for them to work well. It covers all tax years within the transaction limit. - https://cointracking.info/
ZenLedger – Lets you do up to 25 transactions for free. Boasts having the most connectable exchanges via CSV & API as well as blockchains, hardware wallets, desktop wallets, and defi support. Charges per tax year at $149 for 5,000 transactions. Importing worked okay, but like most tax reporting platforms it required me to transfer all the inputs to their import format. This is much more expensive than Koinly or CrypoTaxCalculator. - https://www.zenledger.io/
TokenTax – Charges you per year at $199 for 5,000 transactions which is a bit better pricing than Koinly assuming it’s not in USD, however, I can’t test it because there is no free trial and you cannot upload anything or see what’s possible without paying first. - https://tokentax.co/
Taxbit – Charges per tax year at $50 for unlimited transactions but this doesn’t cover certain aspects of NFT, tax optimization, and tax-loss harvesting which costs $175 per year. For the more expensive plan they also support custom CSV uploads but I’m unable to test how effective that is given I was required to upload a CSV in their format when testing. - https://taxbit.com/
CoinLedger – Charges per tax year at $99 for 1,500 transactions or $199 for 5,000 transactions. They also have a 14 day money back guarantee. Also they require like most services that you use their import CSV file template which is a nuisance. - https://coinledger.io/
Coinpanda – Lets you do up to 25 transactions for free. Charges per tax year at $99 for 1,000 transactions or $189 for 3,000 transactions. While you need to use their file template CSV for uploading transactions for it to work correctly, it was able to import 20% of the transactions from my Coinsquare CSV which is better than most platforms can do. Only supports custom CSV imports from exchanges they don’t support on their PRO plan. - https://coinpanda.io/
What are your thoughts on taxes? Are you overwhelmed by crypto taxes? Did this help? Let me know what you think about this in the comments below and don’t forget to subscribe!
Disclaimer: This is not financial advice and is purely for entertainment purposes. What you see, hear, or read is my personal opinion, and any statements made are based on my views and should not be misconstrued as fact. My crypto portfolio may or may not be simulated
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