If you’re making big profits from crypto investing with services such as Yieldnodes then you need to think about the tax implications. This can be tricky because the rules on taxes are complicated and different for each country. Fortunately, TokenTax is here to help!
TokenTax was founded as the first tax preparation service that accepted cryptocurrency. The business has developed a separate solution to determine the tax liability associated with cryptocurrency exchanges.
Additionally, the startup provides full-service filing, including back-tax filing for crypto traders with erroneous data dating back to 2014 and the standalone solution. TokenTax might be helpful if your crypto tax situation is very intricate.
This TokenTax review will cover its cost, advantages, disadvantages, and more. Read on.
How much does it cost to use TokenTax?
The basic plan of TokenTax costs $65 per month and is available exclusively to Coinbase customers who have completed up to 500 transactions. You will need to switch to a different plan if you trade on numerous exchanges, have more than 500 transactions, or are interested in tax-loss harvesting techniques.
TokenTax allows you to pay for any plan with a debit or credit card and with cryptocurrencies (USDC and DAI). Cryptocurrency payments in Bitcoin and Ethereum are exclusive to VIP and Enterprise plans.
Advantages of TokenTax
It is in the interest of TokenTax’s customers to know about the advantages of using their product.
1. Facilitates All Transactions
TokenTax only supports 85 exchanges. However, their team will ensure that your trades are recorded in your account if you supply a CSV from an unsupported exchange.
2. Claiming Deductions to Reduce Your Tax Bill
If you are on a Premium plan or above, you can learn how to minimize your tax burden.
3. The DeFi and NFT Protocols are Supported
Specific DeFi protocols and NFT markets are integrated within the Premium and Pro subscriptions. Their top-tier VIP membership includes unlimited use of all of their services.
4. Takes Cryptocurrency as Payment
Only a small handful of crypto tax software like TokenTax will take tokens as payment. You can settle using USDC, DAI, BTC, or ETH, according to your specific needs.
There are potential improvements that might be made to TokenTax.
While TokenTax’s Premium plan is priced comparably to other crypto tax software, it does not provide a free tier of service. The $65 package is only available to Coinbase customers. Compared to competitors like ZenLedger and Taxbit, which both allow unlimited transactions for the same price, it’s clear that their VIP membership, which costs $3,500, is a poor value.
2. There Are no Returns
No refunds are available from TokenTax since the company will spend as much time as necessary to ensure that your cryptocurrency tax information is correct.
3. It Just Contains the 8949 Form
Any additional forms, such as Schedule D that must be filled out for the IRS are your responsibility.
Here is a demo of how the tokentax software works;
TokenTax: Will 2022 taxes be a breeze to file?
Investors in cryptocurrencies may find the TokenTax program a helpful tool. Capital gains and losses are computed mechanically, and the program suggests tax loss harvesting. Traders may reap the benefits of tax-cutting tactics without spending much time or energy on the task.
TokenTak is great news for do-it-yourself individual taxpayers who use TurboTax, as it interacts seamlessly with the program. Additionally, TokenTax stands out from the crowd since it offers clients a CPA and an entire tax filing staff.
If you require help resolving tax issues related to defunct exchanges or filing your taxes, the professionals at TokenTax can do both. It is an extremely costly service that few accountants are willing to provide.…Continue Reading