Nfts
The Best Free Apps to Manage and Deduct Your Cryptocurrency and NFT on IRS Taxes
There is no greater fear in life than taxes. And no matter what you think about it, it’s something that needs to be declared. Although the way you make money has evolved in recent years with the advent of cryptocurrencies, tax collectors also had to adapt or create rules to make these processes transparent. If you are one of those who have succeeded in the world of cryptocurrencies, you should also consider what the IRS expects from us declare that we made some extra money.
In the UNITED STATESas well as other countries around the world such as Japan, Canada and several countries of the European Union, tax collection systems already take into account the payment of taxes on cryptocurrencies. Each of these countries considers these transactions under different classifications, as well as the type of tax paid. For example, in the United States, it is classified as property with a tax rate paid on income and capital gains from cryptocurrencies. So if the best thing you can do is to avoid headaches later, it’s to have tools to help you pay your taxes.
On this occasion, we will review some of the best sites that you can have at your side to help you in this cumbersome and new procedure.
3 Cryptocurrency Tax Payment Sites to Consider
Ledger of parts
Formerly known as CryptoTrader.Tax, this tool maintains the reputation and simplicity of its 2022 version. The tool supports integrations with over 350 different exchanges, 181 DeFi platforms, and wallets such as MetaMask, Trust Wallet, and Exodus. The platform includes many other useful features that make it very easy for anyone to calculate their tax obligations arising from their cryptocurrency activities.
The free version allows users to import their entire transaction history, view their net capital gains and losses with the cryptocurrency tax calculator, and track their portfolios. Payment is only required if users want to download and view their full tax report.
Koinly
If you need speed and coverage across different countries, Koinly is one of the best options because it supports tax reporting in over 20 countries, including the United States, Australia, and Canada. Koinly has a feature that matches transfers between exchanges and your own wallets, helping to avoid unnecessary taxes. It also has an intelligent error management system that warns when there are discrepancies in the data or when there may be inaccuracies in a tax return.
Koinly also has a lot to offer users for free and is one of the most powerful tools for savers.
Blockpit
Although some things have changed with the site formerly known as Accointing, the important things remain. The tax analysis feature automatically performs all the necessary steps to accurately calculate a user’s tax liability. It will even generate reports based on different cost accounting methods, allowing users to easily choose the one that best suits their situation. The data import software included in the Blockpit package makes it easy to upload everything from wallets and exchanges via CSV files or integrate with APIs.
As an account, it was a great option for those who prefer free services. It allows users making up to 25 transactions per year to access the platform for free. Now this has changed and under Blockpit you have to pay for an annual license starting from $49.