Crypto tax tools are judged on reconciliation, not tax law. The hard part is assembling a coherent history from exchanges, wallets, and protocols that never agreed on a format: detecting that two transactions are a transfer between your own wallets rather than a disposal, valuing staking income at the moment received, and reconstructing cost basis where records are missing.
Coverage is the differentiator. Consumer tools compete on integration counts and jurisdictions supported, while the DeFi-heavy end competes on protocol labelling. TaxBit took the opposite path, abandoning its consumer product in 2023–24 to serve enterprises and government agencies exclusively.
Frequently asked
- How does crypto tax software calculate cost basis?
- It orders every acquisition and disposal chronologically, applies your jurisdiction's accounting method, and prices each transaction at its value when it occurred. Transfers between your own wallets are detected and excluded so they are not taxed as disposals.
- Which countries do crypto tax tools support?
- Koinly generates compliant reports for over 20 countries including the US, UK, Canada, Australia, and New Zealand. Coverage narrows quickly outside the major English-speaking jurisdictions, so confirm your country before paying.
- What is tax-loss harvesting in crypto software?
- The tool scans open positions for unrealised losses that could be realised to offset gains. CoinLedger runs this continuously rather than only at year end, which matters because the opportunity is time-sensitive.