Best Crypto Tax Software For NFTs

Best Crypto Tax Software For Nfts – Are you looking for encrypted tax software to simplify your tax return? So read on as we cover the best options available right now.

The growth of the cryptocurrency industry, as well as the high profits people can make by buying, trading and investing in digital currencies, has prompted governments around the world to update their tax policies to include crypto profits.

Best Crypto Tax Software For Nfts

However, cryptocurrencies are very dynamic, so keeping track of every transaction for tax purposes is a difficult task. In addition, there is a lack of standardization in the regulatory framework for taxation, which creates a confusing situation for most digital currency holders.

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The true philosophy behind taxes is that the process should be streamlined and easy to follow – however, we are in the presence of a developing market where financial institutions are still trying to determine the best approach to cryptocurrency taxation. Therefore, tax-paying citizens should learn to adapt to potential policy changes.

Fortunately, with the availability of digital currency tax software, crypto enthusiasts don’t have to do all the heavy lifting, as the process can be greatly improved by using specialized tax platforms.

Coinly is a comprehensive cryptocurrency tax software known for its support in more than 20 countries. Like its competitors, this platform aims to simplify the process of tax reporting through innovative tools for inbound transactions and tax calculation. Its support for 6K+ cryptocurrencies, 6+ years of price records and currency import options have all contributed to its growing popularity.

Like other cryptocurrency tax platforms, Coinly allows users to easily track their digital currency assets and related taxes. The portfolio analysis tool allows users to gain better information about their current holdings so that smarter trading and investment decisions can be made. Therefore, there are specific tools that allow you to see ROI, investment fiat, income and profit / loss and return on capital.

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The data entry function allows users to save a lot of time and eliminate the need for taxpayers to switch between different platforms. Thus, Coinly offers users the ability to import and sync their transaction data from multiple supported exchanges.

Automatic data import is available by adding API exchange links or cryptocurrency wallet addresses. Information on margin trading, futures trading, betting, lending and DeFi can also be imported. An interesting feature is Koinly’s Smart Transfer Matching, which uses an artificial intelligence system to identify transfers between your personal wallets, thereby excluding related transfers when calculating applicable taxes.

The fact that the software supports 339 exchanges, 8+ blockchains, 73 wallets and 9 other cryptographic services (such as, Nexo, BlockFi, etc.) ensures cross-platform compatibility.

After entering the data, the software can be used to generate a reliable cryptocurrency tax report. Users can view their earnings and taxes for free, and documents can be created as needed. IRS tax forms, such as 8949, can be generated through the platform, but international tax reports are also available for countries such as Canada, Germany, Sweden, the United Kingdom, and more. Data export is offered in TurboTax and other similar services.

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Finally, the platform offers several tools designed to solve errors. Thus, users can detect potential errors in their records, such as missing and duplicate transactions.

Unlike many of its competitors, this platform has a free pricing package with support for 10,000 transactions and 50 exchanges, but does not include 8949 or Schedule D with international tax reports, audit reports or export to TurboTax. This package is generally suitable for those who want to test the platform before purchasing a plan.

Bear.Tax offers users fast and easy tax filing with computer software designed for the US market, but applicable in other countries as well. The platform is designed to ensure compatibility with traders, accountants, fund managers and other types of cryptocurrency investors. Support for 50+ exchanges, highly profitable pricing plans, automation and 24/7 customer support are some of the features that make Bear.Tax Shine.

As for how it works, Bear.Tax takes a similar approach to other competitors in the market. Therefore, users must first enter their transaction through the API Upload File integration. FIFO or LIFO trades can be evaluated and processed. Finally, users can automatically generate and download their own tax documents for processing.

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The platform offers a fully compatible income classification section, where the following income sources are supported: gifts, stake rewards, airdrops, forks, transmissions, mining, voting rewards, community rewards, inheritance, crypto payments and income programs.

The platform’s intelligent matching algorithm helps ensure transactions are recorded and processed without incurring fees and time delays. This helps comply with IRS guidelines by accurately recording taxable events and ensures you don’t overreport.

A transaction review prompt is also provided where users can search for specific transactions and make changes. Bear.Tax provides a historical price for each supported cryptocurrency to ensure that the correct price base is assigned at a given date and time. Cryptocurrency tax software also supports high frequency traders (HFTs) and bots, which have been known to post thousands of transactions.

For inbound transactions, the platform supports most of the exchanges and wallets available in the market. Similarly, users can import data from unlimited exchanges and cryptocurrency wallets.

How To Reduce Your Crypto Tax Bill Before Year End

Currently, this platform is one of the most popular options on the market, since it offers cryptocurrency traders and investors a quick way to calculate their income, losses and taxes payable. CryptoTrader.Tax ensures up-to-date tax laws and forms so all customers can accurately calculate and report their taxes.

To get started, the platform offers an easy-to-use tax file. First, users must create an account and import their digital currency transactions via the API import tool or by uploading a trade history file. The platform is integrated with all major exchanges available in the market to provide users with a seamless experience.

After entering the trade, users must add their crypto-income sources for the current year. So far, the platform is able to calculate profits from various alternative sources, including mining, gifts, forks, airdrops, staking. Finally, users will be asked to select a calculation method and tax form.

The downloadable tax file report includes a variety of documents such as income statements, IRS Form 8949, audit reports, short/long term sales reports, year-end status reports, and TurboTax Direct Online Import.

Top 10 Best Crypto Tax Software (2022)

Once the report is downloaded, it can be imported into TurboTax or TaxAct thanks to the cross-platform compatible format.

Although the platform is primarily aimed at the US market, international support is also provided. Because of this, taxes can be calculated in any fiat-based currency, for any nation that adopts FIFO and LIFO standards.

There is also a tax loss harvesting feature, alerting users to cryptocurrencies that offer significant tax saving opportunities, leading to longer-term transaction planning.

The CryptoTrader.Tax platform includes a business-oriented service that provides companies with the necessary tools to import, review and file tax returns on behalf of clients. Management and automation tools are also provided.

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Currently, Cryptocurrency trading software offers 4 pricing plans: Hobbyist, Day Trader, High Volume Trader and Unlimited.

ZenLedger is often cited by many as one of the fastest and friendliest tax tools for cryptocurrency traders, investors and accountants. The website is known for its extensive coverage, multi-currency/exchange support, IRS-friendly integration and multiple payment plans. A unique feature of ZenLedger is its personalized tax service, as the platform facilitates collaboration between clients and tax attorneys and CPAs.

First, paying taxes through ZenLedger is basically the same as other platforms available in the market. Users must submit their historical transaction data using the API or simply by uploading the relevant documents. Then, the platform calculates the profit/loss and the tax payable for the current season based on the updated rules.

First, FinCen Reporting is an integration that notifies users if their assets are reported to the Financial Crimes Enforcement Network.

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The platform is also very suitable for those dealing with EOS, thanks to EOS ICO for network support, where tax software accurately tracks EOS coins transferred between EOS and ETH wallets.

TurboTax integration is provided, allowing customers to easily perform final tax calculations for accurate reporting. Through a tax deduction system, investors can reduce some of their potential losses by retaining unrealized capital losses. An accounting spreadsheet is provided that gives users an in-depth understanding of each transaction and how tax is calculated.

The platform also offers a CPA package for accountants who work with cryptocurrency holders. As a result, through this interface, CPAs can earn

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