Eight Reasons You Should Use A Crypto Tax Software

For those fortunate enough to have earned cryptocurrency in 2018, you might be feeling a mixture of excitement and trepidation. On the one hand, crypto can make you wealthy; on the other, it’s a double-edged sword that could leave you poorer than before. To mitigate this potential loss of money and also prepare for future market fluctuations, use a crypto tax software. Here are Top 8 Reasons you should use a crypto tax software : 

  1. Automation : You will be able to generate your crypto tax report automatically, or you can choose to do it yourself as well and save some money by not paying a CPA or an accountant for this kind of report. Instead of spending hours going through the crypto taxation process, you just need to log into your tax software and submit your crypto transactions, trade history (if applicable), wallet addresses and either pay taxes or upload a spreadsheet with your calculations.
  2. Savings : Instead of dealing with slow and confusing forms on your own or hiring an accountant who’ll cost at least 1k or more to do your taxes, these tools can generate your tax report automatically so that you don’t have to worry too much about where your hard-earned digital assets are going.
  3. Easier filing : You might have already heard this a lot over the last couple of years on how difficult cryptocurrency tax filing is. Not to mention the missing IRS guidance which is still not available and might never appear. This is where the crypto tax tool comes in handy, being able to simplify the whole process for you and ensure that all your transactions are accounted for.
  4. Faster filing : Doing your taxes manually takes a long time not only because of having to look through all the transactions, but also because of the lack of automation that you can have with crypto tax software.
  5. Risk reduction :If you were to do your cryptocurrency taxes manually, they would be less reliable and more prone to human error than with crypto tax software. It’s just not worth it when there are automated tools that can do it faster and better than you could ever do.
  6. More efficient tax reporting : Using crypto tax software will make it easier for you to keep track of your crypto tax reporting and keep track of all your gains from the gains in one place. What’s more is that you can have a full breakdown of your crypto taxes and even profit and loss numbers.
  7. Tax optimization : There are different ways in which your taxes could be optimised using crypto tax software. One of them is a tax allocation feature which will help you identify and deal with the potential tax liability of your income.
  8. Expense tracking : You’ll be able to track your crypto-related expenses such as mining expenses, hardware costs, ASIC purchases or even crypto-to-crypto exchanges that could have caused a loss of taxable capital. Once again, these will help you reduce the amount of capital and will help you to create the best long-term crypto portfolio.

If you are looking for a Crypto tax software then, I will recommend Binocs. Binocs is an online platform which allows you to manage your crypto portfolio and taxes very easily. 

About Gopi

Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.

He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.

When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.

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