CryptoTrader.Tax Review: Does It Really Work For Taxes?

Cryptotrader Review

Are you looking for a way to account for your crypto-gains (or losses) this year? Our CryptoTrader.Tax review will be able to provide some insight into how you can handle your taxes for cryptocurrency easily without confusion.

Background and Company Information

CryptoTrader.Tax was founded by David Kemmerer and Mitchell Cookson in October 2017. This company is built up as a cryptocurrency tax manager with tax reporting software that will be able to help you calculate your capital gains taxes in minutes.

The company has shown some resilience through its partnership with TurboTax to assist traders in calculating their cryptocurrency tax gains.

What is CryptoTrader.Tax?

CryptoTrader.Tax allows their users to never overpay on their taxes by calculating their tax liability using the same methods tax professionals use. They do this by importing all of your trades through exchanges and processing the numbers easily.

Pros

  • Makes it incredibly easy to connect your multiple exchanges to the platform
  • Awesome partnership with TurboTax
  • Great for Tax Professionals and Novices too!

Cons

  • Bit overpriced in comparison to others in the market
  • The company often lacks transparency from leadership

How Does it Work?

The product works by first importing your crypto trades onto the platform with your exchange’s API key and it’ll automatically pull your crypto trading history from all years and from all exchanges into the app.

With their technology, it is able to create a baseline for establishing a cost basis and fair market value for the transactions.

Then you are able to input any of the crypto income that you’ve gotten through means such as mining, gift, or rewards. Then the tax report is fully generated with an overall cryptocurrency income report, your short and long-term sales report, an IRS Form 8949, Audit Trail Report, and End of Year Positions Report.

This extensive information should provide the necessary documents for your review and IRS’s needs.

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Benefits & Features

Direction Connections To Your Favorite Exchanges

Their platform currently supports over 30 exchanges worldwide to the likes of Bittrex, Coinbase and Etoro. You don’t have to worry as whether or not your exchange is supported because the platform is able to use a generic CSV exchange template to be processed as well.

International Tax Support

CryptoTrader.Tax is able to work for any currency and that allows you to control your gains and losses through any sort of identification calculation method whether it be LIFO, FIFO, or HIFO. For those who aren’t tax experts, we recommend connecting with a financial expert on the matter. But either method of accounting is possible to use in CryptoTrader.Tax.

Tax Loss Harvesting

The solution also provides the ability to offset and reduce your capital gains by limiting the recognition of short-term capital gains. These capital gains are normally taxed at a higher federal income tax rate — which is great to see a platform with this sort of set up.

Auto Import To TurboTax

If you are someone who leverages TurboTax, the largest tax preparation platform around, then you will definitely be in luck with the ability to directly import into their platform while you are doing your taxes. This gives you the ability to freely integrate your crypto taxes immediately and properly.

CryptoTrader.Tax Cost and Fees

The company sets up pricing based on the trade volume that they have to calculate for you through their computer system. Their 4-tiered pricing structure, at the time of writing, starts at $49 for up to 100 trades and runs up to $299 for the unlimited trade within a tax season.

This pricing will be beneficial for you if you are someone that uses automated crypto trading bot to make all of your trades for you and you can easily import those trades into this platform and it’ll take care of the processing for you.

You receive all the same benefits for each price tier aside from the number of trades, but the pricing is not as competitive as we have seen in the market and especially when compared to other cryptocurrency trading software out there.

CryptoTrader Pricing Guide

Alternatives

What’s great about this budding industry is that there are always multiple options out there for you to review and try out, so you are never stuck to one vendor to take care of all your needs.

There are easily over a dozen alternatives that you can find on the internet when it comes to Cryptocurrency Tax software, but the ones that we can compare to Cryptotrader.Tax are these.

Beartax Logo

Bear Tax

Popular cryptocurrency tax preparation platform, BearTax, provides a clear and easy to use product to calculate all of your cryptocurrency taxes.

They leverage a smart matching algorithm that will match your withdrawals and deposits across all of their exchanges and makes it easy to review.

If you are someone with very little transactions (20 or less) then you can end up spending only $10 to calculate your taxes.

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CoinTracker

If you are looking for a portfolio asset tracking solution and tax reporting software, then CoinTracker does this very well.

Through their system, you get automatic syncing with your asset transactions on your wallets and exchanges.

Some of the benefits with CoinTracker are a 30-day money-back guarantee if you aren’t satisfied with their tax calculations and they offer a free plan for anyone with under 25 transactions.

Taxbit logo

TaxBit

Need something that is very secure and built by CPAs? Then you’re going to want to look into TaxBit as a solution to generate your cryptocurrency tax forms.

They provide you the ability to create tax forms for yourself and any businesses that you run that may be trading or investing.

Some of the benefits provided are support level chats and phone calls, tax optimization, loss harvesting, and even in-depth CPA reviews.

Pros and Cons

Pro

  • Makes it incredibly easy to connect your multiple exchanges to the platform
  • Awesome partnership with TurboTax
  • Great for Tax Professionals and Novices too!

Cons

  • Bit overpriced in comparison to others in the market
  • The company doesn’t have much transparency in leadership

The Real Review: CryptoTrader.Tax Review

CryptoTrader.Tax has provided a lot of benefits to thousands of customers of the years and we are confident that they will continue doing so as this industry matures. We would love to see more maturity in the product as a whole as well as a fair pricing structure all across.

Additional benefits like being able to review your cryptocurrency throughout the year and review any reporting for that like CoinTracker would be a great feature to have. Or even the ability to connect with someone via live chat or CPA personnel, like TaxBit, would significantly improve the product offering.

The CryptoTrader.Tax platform should still definitely be in your considerations when looking for cryptocurrency tax preparation software, but be sure to consult your financial guide as to what will work for your specific situation.

Interested in finding out more about CryptoTrader.Tax? Check Out Their Link Below!