Cryptocurrency and NFT Tax Software to Save You Time and Maximize Your Refund

Cryptocurrency and NFT Tax Software to Save You Time and Maximize Your Refund

With so many different coins available and more released every day, it’s nearly impossible to keep track of them all. Cryptocurrency is exploding in popularity, but with this rise in users comes a host of questions about tax implications. As an investor, you need to know how your transactions will be taxed before making any purchases. With the help of cryptocurrency tax software, you can accurately document your transactions and easily calculate your capital gains taxes. After all, the last thing you want after investing in digital coins is a hefty bill from the IRS for not playing by the rules. The information below will walk you through what NFTs are, how they affect your taxes, and which software tools are best for keeping track of everything during tax season.

Free Portfolio Tracking
If you’re a long-term investor, tracking the value of your portfolio over time can be useful for a number of reasons. In addition to seeing how your investments are performing and understanding how your net worth is affected, you can also use cryptocurrency tax software to track the value of your portfolio over time. This can help you in a number of ways, especially during tax season. With the data you’ve collected, you can accurately calculate your capital gain taxes and have a better understanding of how your portfolio has changed in value over time.

Official TurboTax Partner
One of the most important aspects of finding the best cryptocurrency tax software for you is making sure it’s compatible with your preferred method of filing taxes, such as using TurboTax. While there are many options on the market, finding one that works with TurboTax is an excellent choice. There are several advantages to using TurboTax, especially when it comes to cryptocurrency taxes. First, they have guides and resources available that can help you accurately track and report your cryptocurrency transactions. Second, TurboTax uses what’s called “autotagging” to make the process even easier. Autotagging uses algorithms to determine which categories your transactions should fall into, which saves you time and effort when reporting. Third, TurboTax offers additional benefits like live assistance and audit support, which can be invaluable during tax season.

International Support
If you are investing in a foreign cryptocurrency, you’ll need to report your gains to the IRS using FinCEN form 104. While most cryptocurrency tax software will walk you through the process, it’s important to understand that form 104 does not work the same way for foreign currency as it does for USD. With many cryptocurrency tax software, you can select the “foreign currency” option when reporting your capital gains to take these differences into account. Even though cryptocurrencies aren’t seen as legal tender in all countries, many investors prefer digital assets over traditional currencies. With the growing popularity of cryptocurrency, it’s becoming increasingly important for investors to understand how their investment is taxed. Tax software is a great tool for any investor, whether you’re new to cryptocurrencies or have been investing for years. With the help of a simple cryptocurrency tax software, you can accurately track your purchases, sales, and gains to have everything in order during tax season.