What if the company you traded with does not generate a tax report? The need for accurate tax reporting of crypto transactions has become more critical than ever before. To assist taxpayers with this process, the IRS has approved several crypto tax tools to help individuals and businesses calculate their tax liability and generate the necessary tax reports.
One such tool is Coinbase's "Tax Center," which offers a comprehensive tax report for its users. This tool enables users to easily import their transaction history from Coinbase and other exchanges to calculate their cryptocurrency gains and losses. It generates a report that can be used to complete their tax return.
Another popular option is the cryptocurrency tax software platform, CoinTracker. CoinTracker automatically syncs with over 300 cryptocurrency exchanges and wallets to provide users with a complete picture of their crypto tax liability. It also generates tax reports in a format compatible with major tax preparation software.
Popular accounting software like TurboTax also offers a cryptocurrency tax service to users. Users can import their cryptocurrency transactions from exchanges like Coinbase, Binance, and Bitfinex, and TurboTax will generate a tax report based on the imported data.
It is important to note that using these tools might not guarantee accuracy in tax reporting. We are not affiliate with them. Therefore, it is recommended that users review and verify the generated reports to ensure that they are accurate and comply with tax regulations.