Let’s face it. Cryptocurrencies and taxes are the world’s biggest headache for financial professionals and just about everybody. Governments are yet to catch up with and figure out which cryptocurrency project belongs to which asset class. So, the rules are so many and so confusing that anybody can owe taxes on cryptocurrency transactions without realizing it. Software solutions exist (thank goodness!) that solve these cryptocurrency taxation issues.
Top 5 Platforms That Relief Your Crypto Tax Headache
Below are the list of platform that offers relief to your crypto tax headache with their brief information:-
CoinTracker Allows For Automated Tax Tracking
CoinTracker Provides a comprehensive data feed that allows investors to determine what’s going on with their investment portfolio. This automated portfolio tracking comes with TurboTax, a US and UK tax compliance reporting software that allows for automated tax report generation.
Tax compliance issues get determined at a glance, so the investor decides immediately. It doesn’t mean that investors can do without the services of accountants and other financial professionals. It allows for optimal decisions and consultations with these professionals who know what’s going on taxwise before anybody else.
With over $20 Billion of assets tracked and 500,000 users, CoinTracker is the tool of choice for many savvy investors who want a DIY tool that does what they need and then some.
Koinly Offers Tax tracking With a Lot of Flexibility
Koinly offers portfolio tracking but with a twist. Its application programming interface (API) allows for cryptocurrency trade imports, multiple account access, trading on different crypto exchanges, and artificially intelligently based transfer tracking.
Koinly works with a wide variety of wallets. Including the popular ones, cryptocurrency users know and love. And those that aren’t so popular as well. Koinly also allows for tax reporting on the fast lane but offers more flexibility than other platforms with support for over 300 exchanges, automated profit-and-loss account calculations, and generation of filled-in IRS tax forms.
BitcoinTaxes Offers Free Trials
BitcoinTaxes is not the run-of-the-mill cryptocurrency tax solution; it offers members access to specialists in the crypto tax field.
Complete tax preparation services start at $600. With access to a tax professionals directory, BitcoinTaxes offers a free trial for up to 20 transactions, so customers access the BitcoinTax system and check it out for themselves. It also provides a do-it-yourself approach for those who want to try out their cryptocurrency taxes.
Avarta Offers the Right Wallet for Cryptocurrency Taxes
One problem within cryptocurrency tax systems is the inaccuracies that wallets calculate for transaction fees and the taxes owed to the government.
Avarta offers cryptocurrency investors one of the most dynamic wallets. They include a financial scoring system, biometric identification within a single non-custodial wallet interface. Although to know about the crypto wallets in detail, you can read more here.
With a fast-growing innovative ecosystem, Avarta is one of those ecosystem-driven wallets that give cryptocurrency investors the edge for efficiency of use and cost-effective transactions within the decentralized finance (DeFi) space.
TaxBit Is Designed by Tax Lawyers and Accountants
Tax software designed by lawyers and accountants is like having game cheat codes. While it may sound like a bizarre assertion, they will make such a software platform for taxes without the need to do much.
That’s what TaxBit offers cryptocurrency investors. The TaxBit cryptocurrency software solution team works directly with regulators to even understand regulatory requirements. Hence, their users and clients stay in the green tax-wise.
TaxBit also offers enterprise and consumer options, so it caters to a base of users who want to get everything done safely and securely.
As adoption increases, taxes will continue to be an issue within the cryptocurrency space. The key will be finding products and services that make the process simple and secure for the professionals, their clients, and other members of the cryptocurrency space.
That is the challenge as web3 solutions innovate and solve more of humanity’s problems.