Crypto
The best free apps to manage and deduct your cryptocurrency and NFT on IRS taxes
We look at three interesting sites that will help cryptocurrency traders perform the most dreaded activity for anyone who likes to make money, paying taxes.
There is no greater fear in life than taxes. And no matter how you feel about it, it is something that needs to be declared. Although the way you make money has evolved in recent years with the advent of cryptocurrencies, tax collectors have also had to adapt or create rules to make these processes transparent. If you are one of those who have made it in the world of cryptocurrencies, you must also consider what the IRS expects of us to declare that we have made a little extra money.
In the United States, as well as other countries around the world such as Japan, Canada, and several countries in the European Union, the tax collection systems already take into account the payment of taxes on cryptocurrencies. Each of these countries views these transactions under different classifications, as well as the type of tax paid. For example, in the United States, it is classified as property with a tax rate paid for income and capital gains from cryptocurrencies. So if the best thing to do is to avoid headaches later on, is to have tools to help you with tax payments.
On this occasion, we will review some of the best sites you can have at your side to help you with this cumbersome and new procedure.
3 cryptocurrency tax payment sites to consider
Coin Ledger
Formerly known as CryptoTrader.Tax, this tool maintains the reputation and simplicity of its 2022 release. The tool supports integrations with over 350 different exchanges, 181 DeFi platforms, and wallets such as MetaMask, Trust Wallet, and Exodus. The platform includes many other useful features that make it very easy for anyone to calculate their tax obligations arising from their cryptocurrency activities.
The free version allows users to import their entire transaction history, view their net capital gains and losses with the cryptocurrency tax calculator, and track their portfolios. Payment is only required if users wish to download and view their full tax report.
Koinly
If you need speed and coverage in different countries, Koinly is one of the best options as it supports tax reporting in more than 20 countries, including the United States, Australia, and Canada. Koinly has a feature that matches transfers between exchanges and your own wallets, which helps avoid unnecessary taxes. It also has an intelligent error management system that warns when there are discrepancies in data or when there may be inaccuracies in a tax report.
Koinly also has a lot to offer users for free and is one of the most powerful tools for savers.
Blockpit
While some things have changed with the site previoulsy known as Accointing, the important things remain. The Tax Analysis feature automatically performs all the necessary steps to accurately calculate a user’s tax burden. It will even generate reports based on different cost accounting methods, allowing users to easily choose the one that best suits their situation. he data import software included in the Blockpit package makes it super easy to upload everything from wallets and exchanges via CSV files or integration with APIs.
As Accointing this was a great option for those who prefer free services. It let users with up to 25 transactions per year can access the platform for free. Now this has changed and under Blockpit you need to pay an annual license starting at $49.