Making profits from crypto investing is wonderful, but sadly we all need to pay taxes on our profits. In this TokenTax review we will look at how this software can help to make crypto taxes a breeze and save you a huge amount of time.
TokenTax is a firm that helps people file their taxes in 18 different nations, the United States being among them. The startup, which has been around since 2017, provides full-service filing and a separate tool that figures out tax liability for cryptocurrency exchanges.
TokenTax is a tax-first firm that provides services related to various tax avoidance methods, including tax-loss harvesting. It incorporates margin trading and other facets of cryptocurrency trading with IRS-compliant reasoning.
Here is a short review of TokenTax that you may find helpful;
Keep reading to determine whether TokenTax is the best cryptocurrency tax software for you.
When it comes to assisting clients with their cryptocurrency tax filings, TokenTax was the first software of its kind. Generally, the features of TokenTax include the following:
- Recouping tax losses
- Methods of explicitly recognizing and recording transactions
- Duties on margin trading
- Finances are taxed in a decentralized fashion
- Imposition of taxes on options trading
- Tax considerations for a hypothetical stock exchange deal
- Investment fund hedge accounting
- One-off tasks in corporate accounting
- Direction for underwriters
- Strategy for minimizing tax liability associated with an initial public offering
How does TokenTax function?
While it may be used to submit cryptocurrency taxes, TokenTax is much more than that.
This solution is backed by a whole team of crypto-savvy accountants who will walk you through every step of the bitcoin tax filing procedure. TokenTax’s goods and services are applicable in any tax jurisdiction, and the company’s accountants have assisted consumers in filing taxes relating to cryptocurrencies in 18 different nations.
Additionally, TokenTax goes above and beyond by serving as your comprehensive tax accounting software. It allows you to save time and money on your tax returns across the board, not only concerning your cryptocurrency holdings.
Those working in decentralized finance (DeFi) may utilize the platform’s facilities to automate their tax filings, and the platform can connect with any cryptocurrency exchange globally.
The Benefits of Adopting TokenTax
TokenTax is crypto tax software that automates the whole tax filing procedure. Thanks to the dashboard, your taxable activities may now be uploaded, sorted, and tracked automatically. It also streamlines the process of calculating capital gains and losses following the regulations of each country’s taxing body.
TokenTax streamlines the process of generating tax documents in various common export formats, such as filled PDF tax reports, Excel spreadsheets, and TurboTax import files. It also provides a certified public accountant (CPA) for those who do not have access to one.
TokenTax’s accountants are also well-versed in the intricacies of the business model you’re attempting to pitch to potential partners so that they can advise you on the entire process. It is here to assist you with ad hoc special scenario tasks, such as applying for a margin line of credit or going public.
Negative Aspects of TokenTax
The fact that the services aren’t complimentary is the one significant drawback. The need to connect the traditional and modern financial systems would disappear in a perfect society.
Additionally, the fact that exchanges might close at any time, leaving users with no way to retrieve their transaction history, is another disadvantage. TokenTax’s VIP service includes the filing of an extension if you need extra time to compile email receipts for trades in the event of data loss.
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