How To Find The Best Crypto Tax Software?
If you had any cryptocurrency transactions during 2020, a crypto tax software is an essential tool for you to calculate your cryptocurrency gains and losses. Cryptocurrency exchanges are different compared to traditional brokerages like Td Ameritrade or JPMorgan. At the end of the year, these brokerage houses issue a consolidated Form 1099 (see picture below) listing all your annual proceeds, cost basis & gains/losses arising from stock transactions. However, crypto exchanges like Coinbase & Gemini do not issue such forms at year end. They may issue a Form 1099-K listing all your gross transactions but this will not be useful in preparing your tax return . Therefore, the burden of properly calculating gains and losses to be reported on the tax return falls with you. However, with variety of national governments now paying closer scrutiny to the liabilities of those digital transactions, more cryptocurrency software platfo...