As the market of cryptocurrencies continues to thrive day by day, so does the complexity of crypto tax obligations for investors and traders.
However, with the rise in the popularity of cryptocurrency, governments around the words are tightening their grip on the taxation of cryptocurrencies. Governments have been implementing guidelines and regulations for their calculation.
Henceforth, individuals and businesses face an increasingly daunting task of accurately calculating their tax liabilities. The consequence is the rise in the demand for reliable crypto tax calculators.
Through this article, we will explore the five best crypto tax calculators in 2023 and let you get an insight into understanding them and selecting the best option for you.
Simplifying Cryptocurrency Taxation With The Top 5 Crypto Tax Calculator
Let’s explore the top 5 crypto tax calculators in 2023, each offering unique features and benefits to simplify the process of crypto taxation.
1. Koinly
Established itself as a prominent player in the crypto tax calculator market, we have Koinly at the top of our list. With its intuitive design and powerful features, Koinly makes the process of crypto tax calculation a cakewalk.
The platform supports over 6,000 cryptocurrencies and integrates with more than 300 exchanges. These features make it one of the easy-to-use and simple-to-understand tools for both beginners and experienced traders.
Further, the software supports global tax reporting and allows you to import data using API, CSV files, xyz pub keys and generate reports that you can easily download in PDF format.
It also supports various accounting methods like First In First Out, Last In First Out, and shared pool method. It also enables you to generate international tax reports, Schedule D Reports, etc. Therefore, it allows you to facilitate your service anywhere globally.
Features
● Automated Data Import
One feature that makes Koinly stand out is its automated data import, which can pull transaction information from various sources, including exchanges, wallets, and CSV files.
● Tax optimization:
The tax optimization tool of the platform makes users minimize their tax liability through automated data import, which can pull transaction information from various sources, including exchanges, wallets, and CSV files.
● Other Features:
Koinly provides features like audit reports, capital gains reports, and other tax-related documents that one might need for accurate reporting.
2. CryptoTrader.Tax
Known amongst users for its accuracy and simplicity, the next crypto tax calculator we have is CryptoTrader.Tax. It offers a step-by-step process to import transactions, classify the data, and generate tax reports.
CryptoTrader.Tax supports a wide range of transactions that includes trading, mining, staking, and more. It records your crypto activities and helps you identify and manage them. Although it existed in 2018, CryptoTrader.tax makes your work easy and cuts your struggle with Excel.
It integrates significant exchanges, wallets, and chains and covers NFTs, DEX, and Defi trading.
Features
● Turbo Integration:
One most notable features of CryptoTrader.Tax is its turbo integration. It lets users easily import their crypto tax report into the popular tax preparation software.
● Preview Mode:
Another impactful feature this software provides is a preview mode that enables users to scrutinize their report before making it the final copy. It helps the user to keep up with the accuracy and reduces the chances of error in the tax filing process.
3. Accointing
Accointing consists of diverse tools for keeping track of the crypto portfolio and calculating tax. It enables a wide range of transactions and consolidates them with popular exchanges and wallets.
Its easy-to-use interface offers a guide for the users to understand the process of importing the data, reconciling transactions, and generating tax reports.
Features
● TaxOptimization:
Tax optimization suggests strategies to minimize tax liabilities by tracking the user’s transaction history.
● Tax Loss Harvesting:
Another feature of the platform is its tool called “Tax Loss Harvesting”, which assists the users in strategically selling assets going in loss and offset gain.
● Mobile App Features:
Accointing provides a mobile app that lets customers keep track of their portfolios and tax liabilities simultaneously.
4. KryptoSkatt
For those looking for software to minimize crypto tax bills and maximize their tax savings, KryptoSkatt is the crypto tax calculator for you.
The web3 application offers a wide range of integrations and supports over 200+ wallets and exchanges, over 50 blockchains, and 1000+ DeFi protocols. Moreover, it offers dedicated support for your NFTs.
Thus, irrespective of whether you are staking or lending, if your lending includes DeFi or NFTs — Kryptoskatt has got you covered. The platform’s distinctive functionality set the path for the Binance Incubation Program’s fifth season.
Features
● Diverse Support:
It enables you auto-sync all your data using API or, if you want, use the custom CSV files to import your transaction data from 200+ exchanges and wallets.
● Intelligence Detection:
Its intelligence detection ability helps you divide all your transactions based on specific variables to give you accurate results.
● Crypto Report Generation:
It makes it simple to create Free crypto tax reports compliant with local regulations, quickly spot any mistakes, and then download them after everything checks out.
● Tax-saver:
Using its smart tax-saving strategies during transactions saves you thousands on crypto taxes.
5. TaxBit
CPAs and tax attorneys started TaxBit, an easy-to-use crypto tax solution. The software helps you import all your trade directly from the exchange APIs. Making all the calculations by itself, it makes it spares you time to focus on trading activities rather than doing the accounting.
Further, Taxbit is an exclusive software where you do not need to prepare tax forms before filing them. It assists you in making calculations of capital gain. Moreover, it points out your loss in Ethereum, Bitcoin, Ripple, Polkadot, and several other Altcoins. Also, TaxBit assists you in determining your taxable income using current exchange rates.
Features
● Multi-facility In One Place:
It offers a dashboard indicating your asset balance, tax position, and unrealized profit or loss all in one place.
● Extravagant Features:
TaxBit comes with extraordinary features like tax loss harvesting and portfolio performance analysis.
● Annual Phone Consultation:
All Pro users of TaxBit have access to an annual phone consultation with a CPA to examine their forms before filing.
Conclusion
Trading with cryptocurrencies demands you to pay taxes. The complexities attached to the calculation of the crypto tax are sometimes daunting. But with those mentioned above top 5 crypto tax calculators of 2023, this job can be a breeze for you.
All these five crypto tax calculator software syncing all the wallets and exchanges helps you make a tax report in minutes.
Whether you are an individual trading in cryptocurrencies or a business, using these crypto calculators will save you time and ensure your timely tax obligations in cryptocurrencies.
