Most of the crypto tax services on the market offer a free portfolio tracker service, with tax accounting as a natural value-added. That is useful, but not unique, as there are plenty of Portfolio Tracking Apps out there offering that for free.
Some services will throw in tax reporting for free when transactions are below a very low threshold (e.g 50) given the likelihood that will increase in future years and turn you into a paying customer.
Others will calculate your taxes, but tease you with a hint at your liabilities – getting the full report will require a choice of subscription, which is payable for each tax year you want data for.
The reality is that the majority of crypto users will produce more than 50 transactions in a financial year, which means paying a subscription to get crypto tax reporting. This generally starts at around $/€50 and ramps up from there with higher transaction thresholds.
Once you’ve paid for a subscription you’ll get full access to the relevant tax reports for that year. This will normally mean summary reports, the associated transaction details and the calculation logic.
If you’re submitting your own taxes you’ll need to use this information, which should be formatted to match your tax authority, based on the country of residence provided during registration.
We aren’t going to recommend any particular service, we just encourage you to do your own research and read customer reviews. Most of services work in a similar way and are differentiated by user experience and the length of time they have been operating.
Crypto.com – the multi-product platform – have recently announced a totally free tax service, presumably as a way to acquire customers. It is too soon to learn how their free service compares to established services that charge a fee, what they do with your data. At the moment it is only available in the UK, US, Canada and Australia.
Pay attention to security because though these services don’t have access to your funds, they might be targets of hackers trying to identify users and the value of their portfolios.
You can mitigate some of the cost by referring friends to earn a referral fee if your experience is a good one but the cost of getting an accurate and painless assessment of your crypto tax liabilities is peace of mind, which you cannot put a price on.
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