Crypto Tax Software
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Toku is a global provider of token compensation solutions, boasting users among Protocol Labs, Polygon, Hedera Hashgraph, Stellar, Mina Foundation, Matter Labs, dYdX Foundation, Dragonfly Capital, Filecoin Foundation, Gnosis, Safe, and others.
With infrastructure across 150+ tax jurisdictions, Toku can be used to compliantly implement and manage token payroll and token…
Lukka is a technology and data services provider for middle and back-office crypto asset processing. Its crypto-native products connect, standardize, reconcile, process, and report audit-ready information within a highly secure SOC 1 Type 2 enterprise-grade infrastructure.
Lukka was founded in 2014 as Libra and headquartered in New York, United…
Learn More About Crypto Tax Software
What is Crypto Tax Software?
Crypto tax software tracks, manages, and calculates the gains and losses related to cryptocurrency transactions for tax purposes. Crypto tax software supports multiple cryptocurrencies, exchanges, wallets, and blockchain protocols, automatically capturing transaction data for tax preparation and filing.
The software intelligently classifies transactions into trades, payments, staking, mining, margin trading, DiFi (lend, borrow), fees, airdrops, and forks. It is able to identify charitable donations and non-taxable transactions such as transfers between exchanges and wallets that you own and buying and holding crypto. It automatically calculates capital gains and fills out IRS Form 8949 – Sales and Other Dispositions of Capital Assets. The software often supports multiple countries and the calculation of international taxes.
The software helps identify taxable events. Crypto tax software is useful for those companies and individuals that have transacted crypto in the following ways. Depending on your tax jurisdiction, crypto-related tax returns are required if you:
- Exchanged cryptocurrency for a product, service, or a different crypto
- Used crypto to purchase goods or services
- Obtained your crypto in mining or staking
- Traded or sold crypto
- Were paid a salary in crypto
The software usually includes a tax harvesting dashboard presenting unrealized gains and losses. This tool offers guidance in taking steps to reduce your taxable gains by strategically selling off assets.
Crypto tax software integrates with traditional tax software such as TurboTax, consolidating crypto and fiat currency tax preparation and reporting.
Crypto tax software supports crypto businesses and enterprise-level organizations, accounting firms and CPAs, investors, traders, crypto miners, small businesses, and individuals.
Crypto Tax Software Features
Crypto tax software will include many of these features.
- Support multiple exchanges, wallets, DiFi, and DEX protocols
- APIs to connect to crypto exchanges, wallets, and blockchains to automatically capture crypto transactions
- CSV importing
- Automatically classify crypto transactions
- Calculate profit and loss, and capital gains
- Complete IRS Form 8949
- Dashboards, reporting, consolidated view of transactions, assets, profits, and losses
- Support multiple accounts
- Support multiple countries and international taxes
- Tax harvesting tools
- Integrations with traditional tax software
Crypto Tax Software Comparison
Consider the following when purchasing crypto tax software.
Dedicated Crypto Tax Software vs Traditional Tax Software: Dedicated crypto tax software offers more features and superior integrations with exchanges and wallets than traditional tax software that has been updated to support crypto taxation. Large-scale or complex crypto transaction activity benefits from dedicated crypto tax software that can be integrated with traditional tax software. For low volume, straightforward crypto involvement, the limited crypto-related features that traditional tax software offers may be sufficient for your needs.
Crypto Accounting Software: Crypto tax software overlaps with crypto accounting software. Crypto accounting software often includes crypto tax software features. Evaluate crypto accounting solutions to see if they may better address your overall crypto-related requirements.
Accounting Methods: Confirm that the software supports your accounting method such as FIFO, LIFO, AVCO, or ACB.
Multiple Account Tracking: Some tax software allows you to track multiple accounts. This is suited for accounting firms and CPAs with multiple customers.
APIs: Using products with APIs that support integrations with a wide range of crypto wallets and exchanges for the automated capture of transaction data will make for more efficient, accurate, and less error-prone tax preparation than using CSV transaction importing.
Bandwidth and Processing Capability: Investigate that your selection can support your expected crypto transaction volumes. Some crypto tax software products do not scale to efficiently process high volumes of transactions in a timely manner.
Pricing Information
Introductory pricing begins under $50 and reaches $2,500 or more per tax year depending on the features, number of transactions, exchanges, wallets, and blockchain protocols it will support. Transaction volume has the greatest impact on pricing. High-volume crypto users will need to obtain a price quote. Free software with limited features and capacity is available. Free trials are also available.