Many crypto exchanges submit tax forms to the IRS, each with their own list of supported tokens and information that may not necessarily match. This can create a lot of confusion for US taxpayers. Fortunately, Cointelli can quickly and reliably create a unified tax report at the push of a button.
And if there are any inconsistencies between platforms, Cointelli has a powerful error correction feature that allows users to easily change the data. Cointelli’s algorithms make it easy to compile all data from Coinbase, Binance, Kraken and many more into a single tax report. And all this for the very affordable price of only $49!
What is the best software for crypto taxes?
US cryptocurrency traders and investors need all the help they can get to navigate the tax system efficiently. Cryptocurrency has complicated things for many people, as the IRS classifies it as “property” for tax purposes – dismantling a common misconception that there is no crypto tax. US investors, in particular, need to pay more attention to reporting cryptocurrency taxes. With bullish growth in cryptocurrency investments and massive market growth, the US government has stepped up its efforts to get its piece of the pie. The IRS first drafted its cryptocurrency tax rules in 2014, and Washington recently gave the agency an additional $80 billion to track and catch tax evaders.
Crypto taxes are not easy to understand. Doing them correctly often involves accurately reporting complex transactions across many crypto platforms. So having the right software can be a lifesaver when it comes to getting it right in a timely manner. Cointelli is a cloud-based tax preparation software solution that uses its unique technology to help individuals, businesses, and CPAs save more on crypto taxes. Cointelli specializes in helping users make the most of crypto tax benefits while accurately reporting their crypto taxes.
So what else distinguishes Cointelli? Well, the critical first step in calculating your crypto taxes with tax software is to collect and import your transaction data from multiple exchanges and wallets. This process may seem simple, but you need to follow some essential steps to ensure accuracy.
First, you need to check the number of crypto exchanges and wallets supported by the software. Cointelli, for example, supports significantly more major crypto exchanges than many competitors – and with full import capabilities. Examples of exchanges supported by Cointelli include major ones like Coinbase, Binance, KuCoin, and many other niche exchanges. To add to that, Cointelli also supports at least 15 blockchains, including popular ones like Bitcoin, Ethereum, and even Dogecoin.
Cointelli offers support for more wallets and exchanges and provides the easiest methods to import transaction data from these platforms. These benefits also make Cointelli very easy to use for beginners, making it a great choice when choosing your crypto tax software.
Filing taxes with the IRS
Many major exchanges like Coinbase, Binance, and Kraken send different tax forms to the IRS (for example, Coinbase reports 1099-MISCs and Kraken reports other types of 1099 forms). However, these exchanges only know about transactions that occur within their own systems. Each major exchange also has its own list of supported cryptocurrencies, which will not necessarily match other lists. That’s why it’s so important to have a crypto tax software solution that quickly and accurately gathers all of this information in one place and processes it for you.
Cointelli not only provides these services, but makes them available to everyone, with full access available for a simple, lump sum $49 per year with no hidden fees. Additionally, users can run the program for free to see how much they will pay in crypto taxes and pay nothing until they decide to download the completed 8949 form. In addition to facilitating the filling and downloading of completed reports and forms, Cointelli also has a seamless and easy to use interface and provides 24/7 customer support.
Importing transaction data into Cointelli from various exchanges like Coinbase, Kraken, and Binance.US is a straightforward affair. But for anyone having trouble, Cointelli provides detailed, informative guides and walkthroughs to show you exactly how it’s done.
For example, to import your data from Binance.FRyou just need to follow the steps below:
How to import exchange data from Binance.US
- Copy and paste your API key into the page like below
Once the import is complete and the transaction data has been successfully added, you will be able to confirm your transactions. Once this is done, Cointelli will then prepare your form 8949.
Click on here for more information.
- This article is intended to provide general financial information designed to educate a broad segment of the public; it does not provide personalized tax, investment, legal or other business and professional advice. Before taking any action, you should always consult your own professional tax adviser for advice on taxes, your investments, the law or any other commercial and professional matters affecting you or your business.
- Cointelli is currently only available in the United States. The above financial and tax information relates to the US market.
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