Paying taxes is something that most people in this world cannot avoid. If you are earning, then it is very natural that you have to pay your taxes unless of course, you are extremely lucky enough to be the citizens of those countries like Andorra, Bahamas etc that do not levy an income tax. You can plan and think about a dozen ways that you can use to delay paying these taxes, but nonetheless, if you don’t want to get penalized then all your taxes need to be cleared at some point of time. Thinking about tax-paying can give a countless number of people, a dreadful time because it is natural to be worried about getting all your numbers and value right on paper. Cryptocurrency tax software like Koinly and Cointracker- is easily available, that can assist to file your taxes without any hassles.
Overview of Koinly
The Koinly program provides the user with a platform that he can use to compute his crypto-taxes. It can be simply done by connecting both your transfers and exchange API keys, in between your wallets. Koinly software has Portfolio Tracking facilities to analyze and give you insights about your transactions. It can help you to generate your tax reports with examined logs and even your income tax reports. It combines with Exchanges like Bitterex, Binance, CoinBase, CoinTracking etc . and many people including startups, freelancers and even large companies use this software. You will also be provided with various tools that will help you in examining tax-loss harvesting, exchanging habits etc. It has two different types of plans which you can choose according to your need- Holder Plan and the Oracle Plan.
Features Of Koinly:
Automatic Importing Facility-Allows you to sync all your data in one secure and easy way simply by joining your public addresses of the blockchain with the different exchange API keys.
Tax Report Generation-It allows you to get comprehensive audit data, and even create reliable tax statements and reduce the taxable profits.
Portfolio Tracking- Helps you to analyze the exchanges and see the complete value of the coins and check the values of any of your coins on one perfect platform
Expert Guidance- Koinly also gives you free tax guidance that can assist you with filing your crypto taxes and dealing with other tax-related problems.
Easy portfolio tracking
Block explorer integration
More ideas about your tax strategies.
Live Chat Assistance
Access to a total tax report
It lacks few resources and an open API is absent since it is strictly a Cloud-only platform.
Overview of CoinTracker:
CoinTracker is a web-based app that can display how well all your cryptocurrency portfolios are performing and it then automatically generates required tax forms. The tracking of Portfolio is free and you only need to pay when you generate your tax forms. CoinTracker also has the facility of mobile apps- both for ios and android ones.
Features of CoinTracker
Generating Tax Forms- Subscribers of CoinTracker can make a capital gains report along with the IRS form 8949 which is used for making that report.
Use of Multiple Accounts –All CoinTracker users can have and utilize five different accounting methods to create their tax forms. In case you go for the wrong method, there is a greater chance that your tax form might get audited.
Automatic Syncing with Wallet- is another extremely handy feature that will come with your subscription package. This allows you to manipulate the values of your portfolio automatically, as costs go rise and fall.
Some other features include:
Easy import and export of the CSV data, which can be beneficial for importing old data from some other crypto trackers.
Integration of CoinTracker TaxAct and TurboTax.
Free portfolio tracker
It can easily generate IRS form 8949.
It can easily sync with well-known crypto exchanges.
The Basic tracker is completely free.
It doesn’t help during margin trading, swaps or derivatives
The Subscription plans are expensive when compared to other similar software.
The final verdict:
Both the software- Koinly and CoinTracker have their respective pros and cons. In the end, it is completely up to the user to decide which software they want to use to get their work done. But if you are looking for some expert guidance then it is always safe to go for Koinly as it is a solid cointracker alternative with more features!