Factors to Consider While Looking for a Crypto Tax Calculator

CTA-Blog-Factors-to-Consider-While-Looking-for-a-Crypto-Tax-Calculator
CTA-Blog-Factors-to-Consider-While-Looking-for-a-Crypto-Tax-Calculator

When it comes to determining a crypto taxable income, there are countless complexities involved. The most common reason why it happens is that the laws lack clarity. This is where the crypto tax calculator comes into play. 

It was startups that came up with the software which enabled investors, traders and miners to calculate the crypto taxes. However, all crypto tax software available in the market doesn’t work the same way. So, the more challenging job now is to choose the right crypto tax calculator for your purpose. 

Here’s a list of factors you must consider while looking for a crypto tax calculator. Let’s have a look at what each requirement qualifies. 

ALSO READ: Crypto Slang Terms You Must Know 

1. Importing Data has No Limitations 

Crypto tax filing requires moving data from wallets and exchanges. But, only a few platforms allow downloading the data in CSV or excel file format. Thus, ensure to choose a crypto tax calculator that makes this process hassle-free. It means you should be able to easily import your trades from wallets and exchanges into the software. 

2. Compatible With Country-Specific Tax Policies 

Tax laws differ from one country to another. It means what is taxable in the States may not be the same in Canada. Therefore, employ a crypto tax calculator that is compatible with country-specific tax systems. 

3. Prices are Transparent 

It’s a good thing to pay for a product you use. However, you must also know what you’re paying for. Therefore, when you’re selecting a crypto tax calculator, make sure to look for one that clearly showcases the available payment plans. Apart from that, it must also showcase the features that each plan comes with. 

4. Supports Uncommon Crypto Activities 

Investing, trading, sending and receiving crypto may seem like every day normal activities. However, it isn’t true in all cases. For instance, Airdrops and Forks transactions. Hence, look for a crypto tax calculator that allows these transactions. A good crypto tax software must cover transactions for Forks, Airdrops, Cloud mining, etc. 

5. Supports As Many Exchanges As Possible 

Crypto exchanges often include investments and trades. Since it is impossible for everyone to use the same crypto exchange, supporting some exchanges while leaving others can cause a lot of problems. Thus, look for crypto tax software that supports as many exchanges as possible. It will make the tax calculation and portfolio tracking process seamless. 

About the author

Samita Nayak

Samita Nayak is a content writer working at Anteriad. She writes about business, technology, HR, marketing, cryptocurrency, and sales. When not writing, she can usually be found reading a book, watching movies, or spending far too much time with her Golden Retriever.

Add Comment

Click here to post a comment