If you’re earning money, you shouldn’t hold back from paying the taxes. Sure; it means you’re giving some of your money away. But you are seeing the advantages that come along. The state offers you protection and structure in more ways than you’re aware of. If that’s enough for you to start paying taxes, then fear should be. If you get caught hiding or miscalculating taxes, it won’t be good.
Crypto-trading is something complicated to tax. If you just accumulate them digitally, you won’t be taxed. But if you trade or sell, then you have to think about the taxes. In this case, the currency is viewed as property and any amount you earn from it is subjected to a tax.
Robert Morrisson, an economist working for the best essay writing service UK, emphasizes the advantage of using an app for calculating crypto taxes: “It makes everything easy. You just include the data of your crypto exchanges and the app makes the calculations for you. If you input the data on an ongoing basis, you’ll get a final report during tax report time and you’re done. No lengthy calculations, no headaches.”
Hiring accountants from professional writing services looks like an easy option, but the app is even simpler. Let’s see: what are the best apps to use for calculating crypto taxes?
1. TokenTax
This tool is so awesome that you’ll feel like a real accountant from a college paper writing created the report. The tool works flawlessly. You get a Tax Dashboard, which informs you about your taxes and calculates your liability.
The best thing about TokenTax is that it’s an international tool. No matter where you’re paying your taxes, you can use it to make the calculations. The basic plan costs $65 for one year, but it only works for Coinbase, Coinbase Pro, and Binance API. If you’re trading on multiple exchanges and services, you’ll have to opt for Premium ($199 per year).
2. CoinTracking
You just provide information about your trades, and CoinTracking will give you an instant report on profit. The tool uses 12 tax methods to give you a Capital Gains Report, which is ready for your tax office.
It’s a multi-purpose tool that any crypto trader could use. If you’re a new crypto investor, you can opt for the free plan (it takes data for up to 200 transactions). If you need a more powerful plan, Pro will cost you 0.014 BTC for a year.
3. ZenLedger
This is a specialized taxing tool, which auto-fills tax forms for you. All you do is import data about your transactions. It will calculate the income and gains, and it will tell you how much you owe in taxes. Simple enough.
The Starter package supports 500 transactions and costs $149. You can compare that price with the one an accounting essay writing service sets for a report and see what works for you.
4. Lukka
This service will analyze your crypto transactions and estimate the capital gains and losses. You’re dealing with real professionals, and you can contact them if you want more info on how they can help you calculate the taxes. They set a custom price based on your needs.
5. XpertWriters
People who assume that expert writers only write assignments are wrong. They can handle any accounting project, including taxing for your crypto-trading activities. There are various essay-writing service UK, Australian, Canadian, and U.S. options. Their accountants can help you calculate the tax in accordance to the regulations of your country.
6. CoinTracker
This is a basic, but very effective tool for tracking your cryptocurrency wallet. You’ll always know how much you’ve traded and how much you currently own in cryptocurrency. But CoinTracker also has tax calculating features.
You can start using it for free, but you’ll have to pay for a tax plan. The most basic plan supports 100 transactions and costs $49, but the prices go up to $999 for a tax report on 15K transactions.
7. BitcoinTaxes
Despite the name, this tool works for all cryptocurrencies. The prices start from $29.95 for individuals and $99 for traders (per tax year).
Once you sign up, you’ll only need to import your trading history, income and spending.
8. BearTax
This platform integrates over 40 major exchanges, so it will be easy for you to manage taxes across international exchanges. The capital gain-loss feature is particularly useful since it informs you about your tax liability. There’s a live chat for 24/7 support, so feel free to use it if you have questions.
It’s a relatively cheap tool, too. The packages start from only $0.99 per tax year. It’s only for 20 transactions, but it’s still great. And if you want to calculate taxes form unlimited transactions, you can go for the Ultimate plan, which costs $199.99 per tax year.
9. CryptoTrader.Tax
It’s an automated tool that lets you import the trades and calculate your gains. Then, you’ll get your tax report. You’re the one importing all information, so it takes a bit more than 10 minutes (which is what the site claims) to get your report ready to go. Still, it’s a pretty quick and effective tool.
You can get started for free. The paid plans range from $49 to $199 per tax year.
10. Crypto Tax Calculator
This tool automates the entire process of calculating taxes, so you don’t have to make any manual entries. It supports 65 exchanges, which is kind of impressive. It will automatically categorize the transaction history and generate your tax report.
There’s a free plan, but you might want to go for the Main plan that costs only $29 per tax year and gives you more features.
Did you choose your favorite tool? All above-listed options are great, so make your pick and start calculating your taxes!
Author Bio: Sharon Hooper is a marketing specialist and blogger from Manchester, UK. When she has a minute, she loves to share a few of her thoughts about marketing, writing and blogging with you. Currently, she is working as a marketer at essay writing service usa and BestEssay . You could follow Sharon on Facebook.
More on this topic: Bitcoin and Taxes: What You May Not Know