Best Crypto Trader Tax Report Tools
On this page we want to share the best crypto tax tools we know so far. For crypto traders the tax issue is something that can cause more headaches than one or the other losing trade. If you don’t know much about tax on cryptocurrency trades, Tax likely feel like a big unknown monster hiding somewhere in the woods close to you, watching you with dangerous sparkling eyes. When it comes to money it’s important to always know where you stand, always know all factors that influence your finances in order to really know how much you have.
A trader is like a business owner, who has to keep an eye on all his expenses and tax as well as on his turnover. Especially when it comes to crypto trading you need to know how much money you need in fiat at a certain point in the future when the taxes are due. And if you are trading a lot, and you want to make everything legally correctly, then you it can be difficult or an unwelcome extra effort to make those tax calculations on the side all the time. Presumed that you actually know how it works in your country.
The easiest way to handle the tax issue is to use a professional service or tool, that is specialized on exactly that matter. In the last few years such services where founded due to the rise of the crypto trading branch, especially during the bullish run towards the parabolic bubble in the end of 2017. There are a lot of websites and services out there, but in the field of crypto there are a lot of shady services and scams, so we try to separate the wheat from the chaff.
Below you get to know the 4 crypto tax report tools we consider worth mentioning at the time of writing this article:
Traders can import data from 54 trading platforms including sites like Cobinhood, KuCoin, Hitbtc or cryptobridge, just to name a few. The platform not only lets traders keep track of all their trades, no matter from which platform, cointracking.info also provides price trend overviews and of course it perfectly prepares your trading and income data for your tax reports.
Cointracking.info supports all cryptocurrencies out there, which are already way more than 6,000 altcoins.
What we especially like about this massive crypto tracking tool is their great user dashboard that gives a great overview of your portfolio in the form of very vivid charts and circle graphs.
They even have special service features such as email alerts about rising or falling coin prices concerning the ones you own.
In your account settings you can choose your country out of a long list which looks like it contains all countries on this planet. Also you can choose between all major fiat currencies of the world, so the program can be used for more or less any country. So we’d just shortly say “all countries”, without warranty.
Supported Brokers / Exchanges
Let’s make it short: ALL brokers, such as..
- and all the others
There are two plans available. The Pro Plan is kind of the regular plan for average traders and investors, while the Unlimited Plan is designed for professional investors, as they call it. You can check out the details on their website. The prices look fair compared to the service you get. Just think of the usual rates of accountants or tax software in general, then you’ll notice that Cointracking’s pricing is absolutely fair.
Cointracking.info – Supported Countries
USA, UK, Germany, Netherlands, Canada and Australia are supported by default. However, the smart program is designed to suit any country’s tax situation as you can adjust the tax rate that will be used for the calculations. So you just need to know your country’s tax rates for cryptocurrency gains (short-term and long-term rates might vary).
Since we have a review about cointracking.info on our site, we’d like to suggest you have a look at it here so we don’t need to get into more details again.
Do they Report to the IRS?
In your account at cointracking.info you don’t need to tell your real name or provide any personal information, so the accounts can be used anonymously in case you choose to pay with BTC or altcoins. If you pay with paypal or credit card of course the account will be linked to your real name. But you can see that the service obviously doesn’t have any interest in reporting their clients to authorities, and with anonymous accounts it even wouldn’t be possible, especially if you’re using a VPN before you use the platform. Anyways, it’s a German company that has nothing to do with the US IRS.
The program will also prepare the tax form, so you literally have no effort at all with the boring and time-consuming calculations since you will just spend a few minutes using the cryptotrader.tax service program, and not hours by doing everything on your own by hand.
So CryptoTrader.tax has only those key functions without any additional features, so compared to Cointracking.info it’s very basic but it does the job.
Cryptotrader.tax – Supported Countries
The program is suitable for any country. In your account settings you can choose between a wide range of fiat currencies, so likely the one of the country you live in will be represented. The fiat countries of the following countries are choosable, so obviously you will be able to calculate your tax for those regions:
- Hong Kong
- Czech Republic
- Saudi Arabia
- South Africa
- South Corea
How does Cryptotrader.tax work?
Then you just follow 3 simple steps.
Once you’ve signed up and are logged in you are asked to set the basic information which is the fiat currency of your country, your time zone and you need to select the crypto brokers you’re trading on. Cryptotrader.tax supports trade export files from Binance, Coinbase, Coinbase Pro, Gemini and Poloniex.
If you’re also using other trading platforms you can still import that data but you need to prepare the CSV file correctly so the program can process the data. Here is how it works to prepare the CSV.
The second step concerns your crypto transactions outside of trading. So if you’ve got any incoming or outgoing transactions from your cryptowallets that have nothing to do with transfers from or to the brokers for trading purposes, then you need to add those entries in the second step that is calles “Add Transactions” section. There a list will be generated with the data you have to provide per income entry, such as the cryptocurrency and the amount, additionally a timestamp for your entry will be created and each entry will be labled the way you defined it. Such as “income”, “gift”, “mining” or wherever the money might come from.
The third step is to import your trades from the exchanges/brokers. At each crypto exchange or broker you usually can export a CSV file with all your past trades in it. No need to fill in hundreds of trades somewhere manually.
Afterwards you can review your trades with all the details like exchange, the type, the coins you’ve traded, the amount after fees etc. When you’ve checked this and the table looks fine, than you can already pass through the fifth step which is the creation of your report.
Supported Brokers / Exchanges
- Coinbase Pro
In case you’ve used other trading platforms you need to prepare a CSV with the right data structure.
The cloud SaaS has a very simple pricing consisting of a free version and a payed subscription. The difference is of course in the features you’re offered. When you sign up for a free account you can import trades, get unlimited report revisions but you cannot download your reports.
When you pay the $39.99 for the payed plan you get your income report and you can export the IRS tax form. Also, you can export your data for your tax accountant if you have somebody who will fill your tax form for you.
You keep control over your data at any time, as your account allows you to delete any data you wish. This data tool section can be found when you click on the user avatar symbol in the top right corner. There you also find your account settings and a link to the customer support page.
Do they Report to the IRS?
To the question if crpytotrader.tax will report their users’ data to the IRS, they clearly so No.
Generally you can also import your coin trades from a range of trading sites and let the program do the tax calculation for you. Additionally, with this crypto trader tax report tool you can import your mining rewards from wallet addresses or CSV.
Additionally you can also monitor individual wallet addresses and of course the program manages the IRS form 8949 for you so you don’t have any hustle with filling out the tax report.
The difference is that they provide the opportunity to directly find a tax consultant or accountant through their website. You should keep in mind that all those tax calculating platforms don’t replace professional accounting advice for individual cases. So you might still need help for accounting or regarding your tax declaration, and that’s what Bitcoin.tax is designed for.
- United States
- and others
Bitcoin.tax is able to calculate the crypto tax for Germany, UK, Sweden, Australia, Canada, NewZealand and the United States in the first place. But it will also work for other countries.
Additionally the platform provides a Tax Professional Directory for further tax services like attorneys for tax advice or tax planning. Of course, only Bitcoin tax professionals are listed in the directory.
The platform is also targeting tax professionals and accountants who can use it to calculate the crypto numbers for their clients.
Supported Brokers / Exchanges
- BTC-e / WEX
- Coinbase Pro (GDAX)
- and others by manually prepared CSV
Regarding what you get, their pricing looks quite reasonable. The normal plans will suit most users. But even the high volume plans aren’t expensive when you think of the massive data a day trader can create over a year and all this gets processed by the service. Looks quite fair. Also think that financial services always have their value and price.
Do they Report to the IRS?
In their terms they state that they will only share user data with third parties when they have a user’s consent. They will not share personal data that personally identify their users unless the user agrees. So they don’t seem to proceed their user data to any authorities.
That would also be pretty stupid for a company in that area. They would have a hard time to get new clients if such a breach of confidence would come out.
Cryptocurrency-tax.info – Find Out Your Country’s Crypto Tax Rate
This website is a great unique project in the field of crypto trading tax information and services. It provides an interactive map about tax rates so you can find the tax rates of your country by just clicking on it. By clicking on a country, the map zooms in and a info box gets opened answering questions such as “what is the tax category?”, “How much is the tax rate?”, “Which tax events are taxable?”, as well as if there are any special tax rules and more. So you might need this map when using one of the services mentioned above, in case you aren’t from one of the countries they support.
The use of this map is entirely free. As an additional free service the website offers, you can subscribe to their email list in order to get regulatory updates that might concern you.
So that’s the 4 websites we can recommend. We hope one or the other will be helpful for you. The good thing is you can signup for free and simply check them out.