| Name | Overview |
|---|---|
| Koinly | Free Crypto Tax Software |
| CoinStats | Track All Your Wallets & Exchanges from One Place |
| Blockpit | Crypto Tax & Tracking |
| CoinTracker | Crypto Tax Software to Save You Time and Money |
What is tax software?
Tax software is a tool that assists with the calculation and filing of taxes related to cryptocurrency transactions. Cryptocurrency trading is complex, often involving multiple exchanges and wallets, making manual tax processing extremely difficult.
Tax software was developed to address these challenges. Below, we will explain in detail its main functions, benefits, and how to choose the right one.
What are the main functions?
Many tax software programs come with the following features.
- Automatic acquisition of transaction history
- Automatically retrieves transaction data from multiple exchanges and wallets and manages them centrally.
- Automation of profit and loss calculation
- Automatically calculates profits and losses from cryptocurrency sales, exchanges, mining, and more.
- Creation of tax return forms
- Automatically generates the necessary documents based on the calculated profits and losses, simplifying the complex filing process.
- Portfolio management
- Also includes a function to check the balance and price of held cryptocurrencies in real time, aiding in investment decisions.
What are the benefits?
Using tax software offers the following advantages.
- Improved accuracy
- Prevents errors from manual calculations and ensures accurate tax processing.
- Time savings
- Automates the collection of transaction history and profit and loss calculations, significantly saving time.
- Compliance with laws
- Calculations comply with the latest tax laws and regulations, reducing risks during tax audits.
Which software should you choose?
When selecting tax software, pay attention to the following criteria.
- Coverage
- It's important to confirm that it supports the exchanges you use and the currencies you hold.
- Ease of use
- Look for software with intuitive operation and ample support for beginners.
- Price
- Compare the free and paid plans and consider their cost-effectiveness.
- Features
- Check if it has the functions that match your needs.