TokenTax Review | all you need to know about Tokentax | Crypto Tax reporting made easy.

Introduction

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According to an estimate, by 2021, more than 14% of the American will own a cryptocurrency. With digital coin prices touching the career-high, this roller coaster ride is attracting more and more investors around the globe.

This new trend has attracted a lot of new investors, who want to know how crypto tax works? What is the federal tax rate, the holding period and the range of your overall income? These terms and calculation methods might be confusing and time-consuming.

When there are few hazards to digital currency then why spend hours and hours on complex tax methods. Automated tax software is making life easy for a lot of crypto holders. And this blog is reviewing one of the best cryptocurrency tax software in 2021 that is quick, reliable and secure.

TokenTax

TokenTax is an automated crypto tax software that can help you organize all of the cryptocurrency transactions that you have done across a multitude of platforms—and layout all the profits and losses for you to analyze at the end of your trading spree.

The best thing about this crypto tax software is that everything will be laid out for you on a platter, and you won’t have to smack your head onto your computer screen figuring out how to calculate your profits.

On top of this, TokenTax supports four different types of products to assess the free crypto tax situation for its users:

  • Crypto Tax Reports

  • Crypto Margin Trading Taxes

  • Tax Loss Harvesting

  • Tax Professional Suite

The automated software runs across a multitude of regions covering different parts of the globe. There is no discrimination between countries - you can access it from the UK and any other part of Africa or Asia.

How to Use Tokentax?

Now that we know what TokenTax is - let’s begin and dissect the procedure of the platform in detail. There are a few steps that you will have to follow to file your crypto tax.

Step # 1: Create an account for yourself on TokenTax

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The first step into this **crypto tax **tool will require an account. You will have to hop onto token tax. co and provide some details such as an email address and your tax profile.

The tax profile will include several details about you - for example your country and income filing status.

Step # 2 : Cryptocurrency Transaction details

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Tokentax will allow you to merge all your crypto wallets (cold and hot storage) into one platform. However, for that to happen, you will have to include your crypto transaction details. You can use a CSV file to upload everything into your account (if you enjoy the conventional methods).

Step # 3: Accounting Methods

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TokenTax is a diverse platform. It will provide you with several accounting methods for your free crypto tax report—for example, FIFO, LIFO, minimization, or average cost.

You can be your boss and choose any method that suits you!

Step # 4: Tax Forms are here!

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Yes, That’s about it! Once you are done with entering all the requirements. The automated software will take some time to proceed. After the procedure, you will be able to download the crypto tax forms.

Here’s a catch! TokenTax has an auto-fill option - that will fill your crypto tax form so that you can be stress-free (filling forms is a hassle).

Pricing

There are four plans available for the users. They are different in prices and features. You can choose the one that fits your requirement!

Plan TypeBasicPremiumProVIP
Pricing651997992500
No. of Trades500+5000+20,000+30,000+

Crypto Tax Reports

  • Audit Trail Report

This Crypto report will list everything for the users. It will make a list of all the transactions that took place on different platforms.

  • Cryptocurrency Mining & Income Tax Report

A **crypto tax report **that will calculate the Fiat automatically, everything that the users have gained from the trading will be organized in a report.

  • International Gain / Loss Report

TokenTax is inclusive of all currencies. This report will provide the taxes in any currency so users can be part of the software from around the globe.

  • IRS Form 8949

Populating your crypto trade history in Form 8949 is as easy as you like. This app like software will automatically import the data or history required in filling the form. More importantly, If you are facing issues in the audit of the IRS, you can get personalised help from professionals.

Pros

There are many crypto tax tools available on the internet. But there are many features that make TokenTax one of the best crypto tax software.

  • More Support for the Defi users

Easy pickings for advanced traders, who can automatically file their crypto case uses like staking and mining. No manual working required even in more complex crypto functions, making it more quick and reliable.

  • Automated API Import

Other than supporting major exchanges of cryptocurrency like Binance, coinbase and Bitmex, data will be automatically imported with API support. That means your data is encrypted and safe.

  • CPA Council

If you’re not comfortable with any of the steps - there are professionals available on the site to help the users. Any personal tax problems like issues in audits of the IRS will be handled by trained and experienced accountants.

  • Endorsed by the best in business

There are many scams out on the internet but you can trust TokenTax to handle all your crypto tax reporting because almost every famous crypto trader has endorsed it.

Cons

Every system is bound to have some shortcomings. We have compiled some cons of TokenTax below.

  • Not friendly for the beginners

Every new investor wants to use some cheap options to get started with their investment plans. However, there isn’t much support on this platform. Despite paying $65 for the basic plan, you still have access to only two exchanges Coinbase and Binance. Integration is only available on turbotax where you can directly file your crypto tax.

  • Limited Features on Free Version

There are many features that make TokenTax worth it. However, the con of this crypto tax software is that there are a limited number of features on the free version. To unlock the rest of the key features - users have to pay. And, you won’t be able to sign up for a free trial.

  • Crypto Payments

Some of the experts call it a potential deal-breaker; there is no direct option to make payments through digital currency. Once you have selected your desired plan, you can purchase these plans by your bank debit or credit card. There is no direct option through cryptocurrency. To do so, you have to call customer support for further assistance.