Filing for your crypto and NFT taxes has never been easy. Whether you’re buying NFTs or trading on exchanges, you need to file your crypto taxes. Fortunately, you can use CoinLedger, a tool and platform that allows you to file and generate comprehensive tax reports in minutes. Our CoinLedger Review will tell you everything you need to know.
One of the main advantages of trading and holding cryptos is its anonymity. But even with this, you wouldn’t want the IRS to be on your neck just because you failed to pay your crypto taxes.
Well, most of us refer to cryptos as virtual currency, but the IRS considers it property and capital gains that need to be reported for tax purposes. Unfortunately, filing crypto taxes can be challenging, and you’ll need a helping hand. It is where CoinLedger comes into play.
- Integrates with your preferred cryptocurrency trading platforms.
- Generate crypto profit, loss, and income reports in any currency.
- Import your reports with ease into other tax software.
- Conduct smooth transactions for potential traders to enter the crypto world.
- Provide a variety of services to assist traders in filing crypto taxes and easily viewing their transaction history.
- Finally, CoinLedger supports a variety of wallets, DeFi, and exchange integrations such as Ethereum, Binance, and Kraken.
Continue reading for a detailed CoinLedger/CryptoTrader Review.
In 2018, David Kemmerer, Mitchell Cookson, and Lucas Wyland launched CoinLeger under the name CryptoTrader.Tax. So, formerly known as CryptoTrader.Tax, CoinLedger is a perfect tool that removes the challenge and hassle of preparing and filing taxes for your crypto income. It allows you to connect your exchanges, import trades, and download your tax report in minutes.
In essence, CoinLedger perfectly integrates with all major crypto exchanges and TurboTax to make the process quick and less challenging.
As a crypto trader, you certainly do not want the IRS to be on your case. The only way of ensuring that this is not happening is by making sure that you calculate and pay the correct amount of taxes on your crypto gains. But because it’s not a walk in the park to calculate taxes on any crypto activity, you need a perfect tool to help you make the process more accessible, and that’s why we’re looking at CoinLedger and find out why they are trusted by over
300,000 crypto investors.
In this insightful and comprehensive guide, we’ll give you the CoinLedger review and all its facets. At the end of this read, filing and paying your crypto taxes should be a lot easier. More importantly, you’ll learn how to use CoinLedger and how to import your data in TurboTax.
Why You Need Crypto Tax Software?
In 2014, the IRS ruled that crypto isn’t a legal tender and shouldn’t be treated as dollars or euros.
Instead, cryptos should be treated as stock, bonds, or commodities. So like other assets, the IRS categorizes cryptos as assets that attract capital gains and must be taxed. Unfortunately for many crypto traders, calculating the correct amount of taxes related to crypto gains is challenging and time-consuming.
To deal with these challenges, inventive individuals started coming up with some of the best crypto tax software, such as CoinLedger, which removes the headache of manually calculating your tax liabilities. With the proper software, you can calculate and file for your crypto tax liability in a matter of minutes with just a few clicks.
What to Look for in a Crypto Tax Software?
Now that we’ve looked at the importance of crypto tax software, what are some of the features to look for when choosing the best crypto tax software? Unlike the earlier years of cryptos, you must remember to pay your crypto taxes. Therefore, you should have good tax software to help you figure out your tax report.
That being said, here are all the features to look for when choosing the right crypto tax software.
It wouldn’t make sense to use tax software with minimized integrations. In other words, a good crypto tax software should be compatible with all the popular exchanges and wallets so that you can easily retrieve your crypto data.
Again, make sure that the software can be used in your country. It is one of the main reasons why CoinLedger is one of the best crypto tax software and we have a CoinLedger Review for you to evaluate. It can be used across various exchanges and wallets. It’s also available in the US and other countries, including Australia and Canada.
The number of integrations are countless.
CoinLedger integrates with:
- 400 exchanges
- 20 DeFi platforms,
- 8 Wallets
Crypto Taxes Done in Minutes
Keeping track of all your transaction details, including prices, dates, amount of coins, and the tokens traded, can be quite challenging, especially if you’ve been involved in numerous transactions.
It’s almost impossible to keep track of your transactions manually. It is why you need to get the right tax software to automatically keep track of all these details and, even more importantly, ensure that your crypto taxes are done in minutes.
This tool should be very accurate in calculating the crypto taxes that you’re required to pay, which means that it should be among the best crypto tax calculator as far as accuracy is concerned.
With that in mind, the tax software should offer you pre-filled and downloadable tax reports that you can file. Besides the IRS Form 8949, this tool should be reliable in terms of international tax reporting, your audit track, and reporting your taxes on crypto capital gains and losses.
Reputation and Security
Whether it’s about your securing your private keys or data, reputation and security are of great importance in the crypto world. You should ensure that you’re working with tax software for crypto that is not only secure but also dependable. You certainly do not want to use a tool that can mess things up, leaving you with a penalty or getting accused of tax evasion.
So before committing to a particular tax software solution, you should review its users’ experiences and review what other users say about it.
One of the additional primary features to look for when choosing the right tool for you is its simplicity. For example, you want a perfect dashboard tool that makes tracking your transaction history a lot easier.
These features should be designed in a way that the tool simplifies your crypto taxes procedures while also saving time both for you and your tax professional. The same platform should allow you to access a tax professional or a team of tax specialists who can be beneficial, especially if you’re a professional trader and don’t have time to double-check the crypto tax reports.
Pricing and Free Trials
The best way to test tax software for cryptos is by getting hands-on experience. Most tools offer free plans so that users can experience how it feels to use these tools before committing.
In terms of pricing, you need not burn your accounts to acquire these tools. In other words, pricing should be reasonable. Most of these tools offer varying pricing tiers and a money-back guarantee if it doesn’t suit you after a free plan. In essence, these tools should be affordable.
What is CoinLedger?
Learn everything about this popular crypto tax software in this CoinLedger Review. We see that cryptocurrency and NFT taxes are tricky and confusing even to the smartest of us. And even if you’re smart enough to prepare and file these taxes, it can be time-consuming to do it manually. It is why you need a tool such as CoinLedger to help you track down all your documents and cryptocurrency transactions across multiple exchanges and crypto wallets.
With that in mind, CoinLedger (formerly known as CryptoTrader.Tax) is a cryptocurrency tax software that helps you handle tax reports and refunds, thereby saving you money and time that you’d otherwise spend manually filing these crypto taxes.
With its headquarter in Kansas City, Missouri, CoinLedger was launched in 2018 by its founders, David Kemmerer, Lucas Wyland, and Mitchell Cookson. The idea to create CoinLedger arose after the trio faced numerous challenges when reporting crypto taxes.
As such, they created this state-of-the-art automated tax software that streamlines and simplifies all digital asset tax reporting forms for cryptocurrency, NFTs, and DeFi. With CoinLedger, users do not have to file their crypto taxes manually. Instead, this software automatically imports your data from a host of your crypto platforms for tax filing purposes.
As an easy-to-use software, CoinLedger allows you to access the official and relevant tax forms, which you can then send to your CPA for tax filing purposes. This software is not only simple and also convenient to use. It is also the official TurboTax partner and offers international support and complete audit support to traders worldwide.
Today, CoinLedger is the leading crypto tax reporting software for cryptocurrency, DeFi, and NFT users. Continue reading our CoinLedger review to know all about it.
This software has several features that are perfect for users, including:
- Free portfolio tracking – It allows you to trace the movements of your crypto holdings across various exchanges.
- It can assist you in preparing and filing income tax returns.
- It has a library full of educational articles, eBooks, and videos on crypto taxes and tools.
How Does CoinLedger Work?
To use CounLedger, all you have to do is visit CoinLedger’s official website and create a CoinLedger account. The process of creating an account will take a minute or two. You have to be 18 years old and above to create an account. Read CoinLedger review below to find out the steps involved on how to use it.
Here are the steps on how to use CoinLedger to prepare and file your taxes.
The first step is to use CoinLedger to collect your trading data. You can connect your accounts to CoinLedger through your API keys or by downloading your trading data from various exchanges and manually uploading them to CoinLedger.
The fact that CoinLedger integrates with all significant exchanges means that you do not have to do the manual work of downloading and uploading your data; CoinLedger can do it for you.
The second step is to explain to CoinLedger the sources of your cryptocurrency taxable income. It is because there are various ways to acquire crypto assets, such as gifts, staking, mining, forks, airdrop, and even as salary, and you have to calculate your crypto taxes from these avenues.
The third and last step is to check if every data has been imported and calculated correctly. You can then download the final crypto trader tax report that can be used to file taxes.
For each tax year, CoinLedger should automatically produce documents, including:
- TurboTax Online Direct Import
- Audit Trail Report
- IRS Form 8949
- End of Year Positions Report
- Short and Long Term Sales Report
- Crypto Income Report
Is Coinledger Free?
CoinLedger is not free. This tool comes with varying pricing tiers that are structured based on the crypto transactions that you make each tax season. It means that there’s a pricing plan for everyone. You can choose an affordable package based on its cost basis.
The four pricing plans can be purchased once per tax season and include:
- Hobbyist $49 – 100 transactions
- Day Trader $99 – 1,500 transactions
- High Volume $199 – 5,000 transactions
- Unlimited plan $299 – Unlimited transactions
Keep in mind that you can get a free plan. It allows you to test the platform by importing your crypto data for free, but you can only download the tax report once you subscribe and pay for your preferred plan.
This tool also has a full money-back guarantee that’s eligible for two weeks if you buy a plan and aren’t satisfied with the services.
How Do I Import Crypto Trader Tax into TurboTax?
An essential feature of CoinLedger is that it offers TurboTax integration. It makes it much easier to file the tax reports yourself before forwarding the tax forms to your accountant to handle the rest. But how can you integrate CoinLedger with TurboTax to import transactions?
If you’ve been following this CoinLedger review keenly thus far, you’ve probably noticed that the main purpose of this software is to collect all your crypto data from various exchanges and platforms for tax purposes.
As such, you must remember that TurboTax is a separate tool and won’t congregate all your crypto data for you. In other words, you must collect your crypto data using CoinLedger before importing the data to TurboTax.
Of course, TurboTax has partnered with CoinLedger but to get started, and you have to go to TurboTax and create an account. You should then select the premier package as this is the best package for cryptocurrency.
You can then enter the TurboTax live app, where you’ll answer a couple of prompt questions to help the platform get a clear picture of your finances.
You can then fill out your tax profile before jumping to the “crypto section“, which you can find by searching on the search bar. Within the crypto section, select CoinLedger and then choose the crypto data that you had prepared in CoinLedger.
To get your crypto data from CoinLedger to TurboTax, you can download the TurboTax CSV that CoinLedger exports all tax forms with every report package. Download your crypto data, go back to TurboTax and upload this CSV. Once you’ve imported the CSV, you should see all your crypto transactions on your TurboTax desktop.
You have to keep in mind that the maximum transaction that can be imported into TurboTax is 500, so if your transactions exceed that, you won’t be able to upload your CSV file, so you’ll have to subdivide them into groups before uploading.
You can then “select all” transactions as taxable, and CoinLedger will export all your transactions on the tax forms so that you don’t waste your precious time exporting each one in TurboTax. Once it’s done, select “Finish“, and the summary of your unlimited transactions will appear in TurboTax.
What Version of TurboTax Do I Need for Cryptocurrency?
You probably want to know the best version of TurboTax that you need for your cryptocurrency taxes. Well, the best version of TurboTax that you need for cryptocurrency is the TurboTax Premier.
But why TurboTax premier? In the previous section on how to import transactions from Coinledger to TaxTurbo, we mentioned that you could only import data if it doesn’t exceed 500 transactions, which can be pretty limiting.
But by using premier TurboTax, you can import up to 4,000 crypto transactions from top crypto exchanges and up to 10,000 stock transactions from hundreds of financial institutions.
So, suppose you trade stocks, bonds, cryptos, NFT transactions, rental property, or other financial products and want to pay your crypto taxes. In that case, TurboTax Premier is the best version to use to figure out your taxes on your crypto capital gains for each tax year and tax time. Find out why you should use the CoinLedger by reading our CoinLedger review.
Why Choose CoinLedger
While there are various cryptocurrency tax software in the market today, CoinLedger remains one of the best, if not the best. Below are a few benefits for which you should choose CoinLedger as your go-to software for crypto tax services.
Easily Import Historical Data
You’re probably trading on numerous exchanges using multiple wallets. As such, it isn’t easy to manually keep track of all these details. But with CoinLedger, you can easily import historical data for tax purposes and other uses.
Crypto Taxes Done in Minutes
Unlike most of its competitors, which can take up to 20 minutes to generate your crypto taxes, Coinledger is known to be superfast and will generate your tax reports in minutes. Instead of wasting time creating reports, you can use them for trading and earning more money.
Generate Your Tax Report
You’re already aware that the IRS requires you to pay taxes on your crypto transactions. But because manually tracking all the trades for the tax season or tax year isn’t that easy, CoinLedger can quickly generate your tax reports.
Trusted TurboTax Partner
CoinLedger is the official crypto partner of TurboTax. It means that it’s reliable and secure to use.
Export and File with Ease
The fact that CoinLedger is the official partner of TurboTax means that you can easily export your crypto data and files to TurboTax with ease for cryptocurrency tax reporting purposes.
Import from any Platform
Again, CoinLedger is compatible with most exchanges and multiple wallets. It makes importing all your transactions from all platforms and exchanges much more effortless.
International Tax Reporting
CoinLedger is not just limited to the United States; you can use it for international tax reporting purposes. This is because you can use CoinLedger in any country that supports HIFO, FIFO, or LIFO reporting techniques.
Demystify Crypto Taxes
Manually filling out your crypto and NFT taxes is not a walk in the park, even for tax professionals. Thankfully, CoinLedger demystifies crypto taxes and makes filing a tax return much simpler and more accessible. Read further in this CoinLedger Review what people have to say about it!
What Customers Say about CoinLedger
While researching for this piece, we came across what users say about this tool. Here are some of them.
“CoinLedger offers some of the most reasonable and affordable packages in the market today.”
“The platform offers outstanding customer service and live chat support that is very helpful in handling your queries fast and promptly.”
“This software is easy-to-use and offers great products and a vast number of integrations.”
“As much as the software is efficient, brace yourself for technical problems that can be frustrating.”Visit official website!
Frequently Asked Crypto Tax Questions
Are crypto-to-crypto trades taxed?
Yes, they’re taxed. You are either making or losing money on these trades, which is taxable income, so you must keep track of your earnings and report them to the IRS.
What is taxable when trading cryptos?
Buying crypto using fiat money isn’t a taxable event. Holding it on the crypto exchange or transferring it to your wallet doesn’t qualify as a taxable event. But selling crypto using fiat money and buying crypto using another crypto is taxable. Getting paid using crypto is also taxable.
What happens if you do not report crypto taxes?
The IRS could audit you if you fail to report crypto taxes, leading to massive penalties or, even worse, a jail term.
How can you determine how much tax is owed per trade?
Calculating how much tax you owe per trade is tricky. You can, however, calculate the taxes that you owe for either short-term or long-term capital gains or losses.
Although CoinLedger isn’t a tax loss harvesting tool, you can use it to pay taxes on your net profit if you’re using the tax loss harvesting strategy.
Does CoinLedger have an API?
Yes, CoinLedger has an API.
To this end, CoinLedger is unquestionably an excellent crypto tax tool. Thanks to its seamless integration with Turbotax and compatibility with a broad selection of exchanges and wallets, it’s one of the best, if not the best, cryptocurrency tax calculators. As well as its tiered and affordable pricing makes it a perfect fit for everyone’s budget.
So, this was all about the CoinLedger Review. We hope this page review clarified things for you. Do not let the IRS be on your case. Use CoinLedger to ensure that you promptly and efficiently pay your crypto taxes.
So what are you waiting for? Get 10% off with our exclusive discount code: CRYPTOTAX10
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