Best Cryptocurrency Tax Software 2020 – For the wider world in general and cryptocurrency specifically, 2020 marks the start of a new decade. More than 10 years have passed since the launch of Bitcoin as the world’s first cryptocurrency and, with literally thousands of new digital coins now in circulation, the next decade of crypto is almost guaranteed to see a full accounting of the asset’s long-term viability.
Despite the surge of activity crypto has seen through the 2010s—or perhaps because of it—cryptocurrency tracking and accounting have been playing a constant game of catch up with the rest of the industry.
However, with a number of national governments now paying closer scrutiny to the tax liability of these digital transactions, more cryptocurrency software platforms have arisen to fill the need for reliable and comprehensive cryptocurrency accounting. To kick off the new year—and decade—here are the four best cryptocurrency tax software for 2020.
Among the best options for active cryptocurrency traders, Accointing’s automated data import and tracking are compatible with multiple wallets across all major exchanges and sports a user-friendly interface between both its web-based and mobile app versions. Accointing offers accounts ranging from free to $259.99 for its professional version, which makes it among the more affordable options of the lot.
Accointing offers some of the most comprehensive cryptocurrency tracking and optimization tools of any option available. The platform boasts advanced charting tools, account trading metrics as well as a long- and short-term holding period visualizer and calculator. Best of all, many of these features are available in the free version of the software and the support team is quick to respond to any questions or provide guidance on how any of the tools work.
Where these tracking features shine is in their implementation alongside Accointing’s reporting tools. Accointing’s tax software allows users to optimize their filing through automated income calculation along a variety of cost basis methods, including first in first out (FIFO), last in first out (LIFO) and specific lot accounting. The software also features guided report creations as well as standardized filings for the United States, the United Kingdom, Germany, Austria and Switzerland.
One drawback to Accointng’s filing capabilities is its incompatibility with general tax software like TurboTax. Nevertheless, Accointing’s tax optimization abilities and intuitive interface make it one of the best cryptocurrency tracking and filing tools on offer.
For those looking for a more specialized tax tool with a few bells and whistles, CoinTracker offers automated tracking across major exchanges and a laudable set of trade analysis and accounting tools. The platform offers packages that start at $49 and a premium version for $500, though CoinTracker also provides customers the option to customize a package to suit their needs.
First and foremost, CoinTracker is a tax tool and it fills that role extremely well. In addition to FIFO and LIFO accounting methods, it also allows for highest in first out (HIFO) and adjusted cost base (ACB) accounting methods. What’s more, users can freely export their transaction and tax data directly into 8949 tax forms as well as to tax prep software TurboTax and TaxAct and even just a CSV file.
Backing up these tax filing capabilities is a solid suite of tracking tools, including automated sync with multiple exchanges and wallets and prices for more than 2000 coins. Unfortunately, the options in this regard are somewhat less robust than other platforms, lacking some of the charting and customization tools available from other software.
Still, if you are looking for a straightforward, accessible and versatile option for tracking wallets and generating crypto filings during tax season, CoinTracker is one to keep in mind.
CoinTracking is one of the more established crypto tax software on the market right now, having launched way back in 2012. With that longevity comes a stellar track record as an all-in-one cryptocurrency platform that incorporates sophisticated tracking and charting features with versatile tax accounting capabilities in a single package. Annual pricing starts all the way from free to the $600 “unlimited” version, which puts CoinTracking right in the middle of the value spectrum.
One of the main selling points of CoinTracking is the sheer amount of trading and tax analysis tools the platform offers, including trade statistics, trading fees, realized and unrealized gains, statistics on more than 7000 coins and calculations for margin trading gains and losses. With API or CSV integration for more than 70 exchanges and the ability to link up to 10 different accounts, CoinTracking provides more than enough tools for experience8d crypto traders to toy around with.
The variety of tracking features on offer from CoinTracking means that its tax reporting tools are among the most robust of the lot. CoinTracking supports FIFO, LIFO, HIFO and lowest out first out (LOFO) accounting methods and even offers consulting with CPAs from eight different countries (including the U.S. and Canada) to help traders compile the right information for their jurisdiction.
While all of that might sound perfect, the amount of information available on CoinTracking can be a bit o -verwhelming to newcomers and the interface is sometimes difficult to navigate compared to more contemporary platforms, particularly across multiple accounts. However, for advanced, sophisticated crypto traders looking for a robust tracking platform, CoinTracking may be the best bet.
TokenTax – Best Cryptocurrency Tax Software 2020
Finally, TokenTax is a software best suited for those in need of a pure cryptocurrency tax platform. Unlike the previous options, TokenTax offers very little in the way of live tracking and analysis tools but makes up for it by being the most comprehensive and potentially affordable filing software of the bunch.
A limited basic version of the software starts at just $69 and climbs to $1,499 for a VIP account that includes hands-on support with a CPA. However, veteran traders would likely prefer starting at the $199 premium version, which includes API/CSV compatibility across all exchanges.
As you might expect from this level of specialization, TokenTax also offers one of the widest arrays of accounting tools and methods of any other software on this list. The platform guides users through everything from accessing historical ICO data to tax loss harvesting and liabilities for mining and airdrops. The software is also very clean and easy to navigate and bears the distinction of being able to export its filings to TurboTax.
Of course, this value of this specialization will vary based on your needs. As stated, the basic version only supports three exchanges—Coinbase, Coinbase Pro and Binance—and even the premium version lacks support for margin transactions. And, since there is little to no analysis, it’s not the best tracking choice outside of tax season. However, if you’re in the market for either a slimmed-down budget option or a complete VIP experience com tax time, TokenTax is worth a look.
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