Innovating and ambitious crypto tax companies and their products were investigated. What he discovered
In 2018, the phrase “crypto” is a byword for “scam,” and Nouriel Roubini joyfully refers to the crypto area as “La La Land.” In 2021, the Los Angeles Lakers’ basketball stadium will be renamed “Crypto.com Arena,” Tom Brady will trade non-fungible tokens, and El Salvador will accept bitcoin as legal cash.
The media is focusing on the metaverse, all-time highs, and DOGE as the future of money. But even the most antiquated aspects of banking are getting a modern facelift. The tax industry is that dinosaur.
Recently, the tax sector has made progress in understanding a new asset class and its tax implications. Filing crypto-related taxes can be difficult, with numerous forms, calculations, and records to keep track of.
Devout crypto tax organisations have risen to the occasion and are ready help you lessen your tax-related stress before the deadline.
I spent some time with each company, talking to important individuals, comparing prices, applications, and user interfaces. Here’s what I found.
Accointing
A mechanical engineer servicing Ferraris, Dennis Wohlfarth got the bitcoin bug in 2014. Three years later, a group of entrepreneurs from Germany, Switzerland, and the US founded Accointing in 2019.
Its crypto tax reporting solutions for Australia, Austria, Germany, Switzerland, the United Kingdom, and the United States are priced between $79 and $299 (with a free tax report). Traders can utilise their Trading Tax Optimizer to optimise their taxes by harvesting losses and analysing data.
A recent partnership with Swiss audit behemoth BDO boosted the startup’s brand name and solidified its position in Europe. So we can grow our tax solutions in Europe and subsequently APAC. “We want to grow our blockchain connections, NFT and DeFi tax support, and portfolio features,” Wohlfarth says.
CoinTracker
Jon Lerner and Chandan Lodha, former Google workers, founded CoinTracker in 2017 and transformed it into a unicorn in January. For the tax centre, CoinTracker established an exclusive cooperation with Coinbase in January.
“We aim to be the layer that enables people interact with crypto without giving them compliance headaches,” says Shehan Chandrasekara, CoinTracker’s tax head.
CoinTracker offers four tax solutions covering Australia, Canada, the UK, and the US, with free tax reports and paid choices ranging from $49 to $159, plus a “Unlimited” solution priced individually.
Also, the company’s enterprise solution has the “biggest players” in the market interested.
A portfolio tracker completes their service, allowing users to tax-loss harvest and track NFTs and DeFi transactions. CoinTracker has a huge year planned. “We will keep hiring and listening to our users. “We expect over one million users throughout tax season,” Chandrasekara said.
CoinLedger
CoinLedger, originally CryptoTrader.Tax, was created in 2017 by David Kammerer, Mitchel Cookson, and Lucas Wyland to disclose “over 120,000” arbitrage deals. “We were frantic,” recalls CEO David Kammerer. Our taxes were not reported anywhere so we had to repair it ourselves.”
CoinLedger had to figure out how to declare their own holdings, launching the initial version of the tax platform in April 2018.
Tax-loss harvesting and the TaxAct function have been added to CoinLedger’s tax tool offering for the US market. From $49 to $299 per tax offering, with the most priced package permitting unlimited transaction reporting. It also helps CPAs service their personal clientele by providing a B2B solution.
With the help of cryptocurrency broker and portfolio tracker Voyager, CoinLedger plans to provide NFT tracking for their portfolio in 2022, alongside more portfolio options for their free portfolio tracking solution. “We want to make crypto more accessible, so we’re focused on our analytics reporting and getting the data right,” said Kammerer.
TaxBit
TaxBit is the brainchild of Austin Woodward and his brother Justin Woodward, who saw the potential tax burden crypto traders could face after the 2017 meltdown. No way this business [crypto taxes] could go mainstream and be compliant without accurate investment tracking, said Michelle O’Connor, the company’s vice president of marketing.
TaxBit began in 2018 and has since acquired an exclusive agreement with the IRS (in May 2021) and unicorn status three months later in August.
TaxBit currently offers free and paid tax services for individuals ranging from $50 to $500. They also help businesses and governments be tax compliant while learning more about the crypto ecosystem. It also has a portfolio tracker app and a TaxBit network where users of member companies can get free tax forms. It also aims to “gamify” crypto taxes with its tax optimization tool and unique NFT dashboard and tracking service.
“[In 2022] we’ll keep iterating on DeFi and NFTs, introduce a batch of alliances, and focus on our public sector,” O’Connor added.
TokenTax
Mr. Zac McClure’s life is quite “eclectic.” After JPMorgan, he taught math with Teach for America before going to Zimbabwe to teach locals about personal finance. “I fell in love with crypto and had a finance and accounting background, then markets soared [in 2017] and people everywhere requested for my help figuring out their taxes,” McClure said.
TokenTax was ready for individual investors in 2017. Currently, they provide four crypto tax report plans, ranging from $65 to $3500, covering Australia, Canada, and the US. They specialise in margin trading and tax loss harvesting.
“We charge a lot yet we solve the toughest difficulties. If the other software doesn’t work, go to TokenTax. TokenTax has also collaborated with eToro, Binance, and Crypto.com. “[In 2022] we want to expand our wallet integrations, teach people about taxes, and take some of the tax stress off people’s shoulders,” McClure said.
ZenLedger
ZenLedger’s CEO, Pat Larsen, is a celebrity. Larsen, a two-tour military helicopter pilot, earned an MBA from the University of Chicago before becoming an investment banker. Larsen feels that “the aim of tax services is to transfer you from a condition of worry to a state of calm.” It’s for the numbers.” So called ZenLedger.
Offerings include a free tax reporter for up to 25 transactions and tax software from $49 to $399. It also offers customised NFT and DeFi tax plans ranging from $195 to $6500 over two years. Users can also use a tax loss harvesting tool and directly integrate with Turbo Tax. Valkyrie Investments and eToro are among the partners.
“If you are a U.S. citizen, you should avoid being a felon,” Larsen added. The sheriff will arrive armed.” Larsen stated, “We want all hands on deck and what we constructed is a powerful offering.” The speed of progress will pick up.”
Taking on the sluggish old tax sector, these young guns are doing the heavy work for you. Whether it’s finding out how to trace coin transactions across DeFi platforms, taxing NFTs, or automating tax filing, the crypto tax tool sector has had to overcome some of the largest difficulties.
Whether you like them or not, you must pay your taxes. Whether you’re coding solidity at Ethereum or using Binance’s 100x leverage, regulators will be attempting to tax your crypto. So, spare a few minutes for these tax preparers and avoid a difficult situation on tax day!
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
