Steve Carney 
Cryptocurrency traders know that calculating capital gains and reporting taxes can be a daunting task . Luckily there are tools available to simplify this process . In 2023 two popular options are CryptoTrader.Tax and Koinly . Let’s take a look at what these platforms offer and help you decide which one is best for your tax reporting needs .
CryptoTrader.Tax is a user friendly tool that makes calculating capital gains and preparing taxes a breeze . Simply upload your trade history from any exchange and you’ll receive a detailed capital gains report . While it has a solid user satisfaction score of 90/100 its overall popularity seems to be slightly declining with a score of 82/100 in the Tax Management category .
Some notable features of CryptoTrader.Tax include data visualization , data import capabilities , multi currency support and comprehensive tax management tools . These features allow traders to gain insights into their trading activities , easily import their transaction data , handle multiple currencies and manage their tax obligations effectively .
Koinly on the other hand offers a range of features that simplify the tax reporting process . You can easily import your trades by connecting your exchange accounts via API or uploading CSV files . The platform also supports blockchain wallets through public addresses ensuring accurate recording of transactions . With support for over 300 exchanges and wallets Koinly is a versatile platform for traders with diverse portfolios .
Koinly goes beyond just calculating capital gains by providing a comprehensive overview of your crypto investments . You can track your portfolio’s performance including total holdings , ROI and growth over time through a user friendly dashboard . Additionally Koinly allows you to preview your capital gains and generates detailed tax reports . Whether you’re filing taxes independently , using tax software like TurboTax or working with an accountant Koinly has you covered .
One advantage of Koinly is its wide range of tax report options . For US users the platform can generate filled in IRS tax forms such as Form 8949 and Schedule D . It also supports international tax reports for countries like Canada , the UK , Germany , Sweden and more . If you prefer using other tax software Koinly enables you to easily export your transactions for seamless integration .
Koinly also provides tools to help you identify and resolve transaction issues . Its double entry ledger system ensures accuracy by providing an entry for every change in your asset balances . The platform highlights missing or incorrectly imported transactions helping you rectify errors and maintain the integrity of your tax reports . Moreover Koinly performs automatic import verification checking your wallets via API to ensure data accuracy . It also handles duplicate transactions saving you the trouble of keeping track of what’s already been imported .
In summary both CryptoTrader.Tax and Koinly offer valuable features to simplify the tax reporting process for crypto traders . While CryptoTrader.Tax focuses on capital gains calculation and offers data visualization and multi currency support Koinly provides a more comprehensive solution . With its extensive exchange and wallet support , portfolio tracking , various tax report options and transaction issue detection tools Koinly emerges as a versatile platform for accurate and reliable crypto tax reporting
