Cryptocurrency investments have recently grown more popular. Today, there is a larger group of people investing in cryptocurrencies. However, despite its popularity, the area is not yet fully understood by many.
Ever wondered why this happens?
It is usually because crypto tax calculation is a difficult process to begin with. It requires dealing with a lot of things, like digital crypto wallets, cryptocurrencies, and crypto exchanges. Furthermore, you’ll have to calculate the net profit and loss and then, eventually file and submit the tax returns to the IRS (Internal Revenue Service).
Therefore, to make the process less complicated, people use crypto tax calculators. Crypto tax calculators can help you understand crypto taxes better by optimizing and automating your bookkeeping processes and ensuring that you comply with the tax regulations of your state or country. Now, let’s have a look at the five best ones that topped the charts in 2024.
1. Accointing
This crypto tax calculator offers services for both crypto tracking and tax reporting. It has tools that enable users to generate tax reports, calculate tax loss, analyze portfolios, track the cryptocurrency market, etc.
Key Features:
- Offers free trial for up to 25 transactions
- Supports tax loss harvesting
- Enables manual tracking for NFT transactions
2. CoinTracking
CoinTracking is an excellent option for diversified traders and investors. It enables users to track activities across varied crypto exchanges. Apart from that, it also provides them with every detail about the cryptocurrency market trends using automation features.
Key Features:
- Available on a free trial
- Supports cost basis and cash flow analysis
- Works with multiple crypto wallets
3. BitcoinTaxes
With this crypto tax calculator, you can carry out faster crypto calculations, exchange imports, and easily file or download taxes. Here, the taxpayer only needs to add or upload transactions from different digital wallets or crypto exchanges they have used. The rest, which is calculating capital gains, will be done by the software.
Key Features:
- Enables tax-loss harvesting
- Calculates gains or losses on capitals
- Offers tax preparation services
4. Koinly
The best part of using this crypto tax calculator is that it lets you easily connect with varied digital wallets, blockchain addresses, investing apps, and crypto exchanges. It will also give you a clear idea of your crypto activities across various platforms. This software works best for individuals and businesses that need to file and calculate both international and local taxes.
Key Features:
- Available on a free trial
- Supports cost basis and cash flow analysis
- Works with multiple crypto wallets
5. TaxBit
This is another great crypto tax calculator that simplifies the tax filing process. It lets you track your crypto activities and converts data into crypto tax reports. The synchronization and conversion of data usually happen with the help of automation technology that comes in-built into the software.
Key Features:
- Has an easy-to-use dashboard
- Supports integration of PayPal and CoinBase
- Offers audit assistance and cost basis