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TaxBit Review : Know all the Details of Taxbit – Crypto Tax Software 2022

TaxBit Review: Crypto Tax Accounting Software Details

TaxBit connects consumers and businesses with the digital currency tax experience. TaxBit digital currency tax software integrates both platforms and users who need to issue 1099s. This process connects companies issuing 1099s and the process of converting consumers’ 1099s and other data into fileable tax reports. TaxBit Enterprise and TaxBit Consumer work together to provide a seamless tax experience across all platforms. Our API makes it easy to get all your data automatically. Whether you use TaxBit Consumer or the Tax Center suite, you can see the tax impact of your transactions on exchanges. TaxBit is the most trusted 1099 provider for the cryptocurrency industry. TaxBit is used by regulatory bodies to assist with cryptocurrency taxation.

How Does TaxBit Work?

TaxBit’s crypto tax software is designed to process millions of cryptocurrency transactions and currently supports over 4,200 digital assets, stocks, commodities and all fiat currencies. When you connect your exchange, your data is automatically captured and transmitted through the TaxBit tax engine. Beyond generating year-end tax forms, TaxBit also provides real-time portfolio metrics when users trade.

The software uses an automated tax calculation and reporting method, monitors transaction data synchronization, calculates profits and losses, and claims capital losses at the same time. To do this, the software uses an API integration system. The system automatically captures the user’s transaction history and cycles the tax engine. Please note that TaxBit software is intended for US crypto professionals only and uses the IRS tax code as a guideline for their tax reporting practices. This company is looking to expand its services to other countries such as England, Canada and Australia.

TaxBit currently supports 4,200 digital assets/commodities/stocks, a wide range of crypto exchanges/wallets and all fiat currencies, so users can automatically manage their crypto exchanges/wallets via Connect the API to the TaxBit platform. Allowed construction. The platform also has real-time portfolio tracking tools for users who want to see how each transaction they make affects their tax liability. If TaxBit does not support your conversion, users can use our automatic CSV conversion tool. However, API integration is the best option, so confirming that TaxBit supports your exchange is essential before subscribing to any of TaxBit’s plans.

TaxBit 2022 Review: Best Value and Ease of Use

Virtual currency taxation is constantly changing. In the United States, they are more established, but leave much to the investor’s interpretation.

Cryptocurrency Accounting is Difficult

The IRS considers transactions such as the purchase, sale or transfer of virtual currency to be taxable. To save thousands of investors from headaches, TaxBit was created to simplify the process and save taxes for investors. Without the use of professional software and professional accountants, investors may have more tax liability.

Features of TaxBit

TaxBit is one of the most trusted cryptocurrency tax software solutions on the market. The list of companies that have invested in this project is long and includes some of the most famous names such as Paradigm, PayPal, Coinbase Ventures and Winklevoss Capital.

Taxbit

1. Unlimited trading

It used to offer limited transactions for Basic, Plus+ and Pro plans (250, 2500 and 25000 respectively), but the TaxBit team decided to remove them with the launch of the TaxBit Network. Therefore, there are no restrictions on transactions, regardless of the condition. The TaxBit plan you choose.

2. Free tax return generation

All TaxBit users can use this software to generate current 1099-B and 8949 forms for free. Regardless of the program, TaxBit will generate these for all companies that the TaxBit network supports. However, only those with paid plans get free tax returns and historical tax returns for all platforms.

3. TaxBit Tax Optimizer

TaxBit’s tax loss harvesting and tax optimization features are very useful to help cryptocurrency traders reduce their tax liability. You may be able to figure this out yourself by calculating capital gains and cryptocurrency tax rates, but we recommend getting help.

However, if you want to access this feature, you need to get a Plus+ or Pro plan.

4. DeFi and NFT tax engines

This feature is available to all users regardless of which app you are using. However, if you need additional non-tax NFT data, you can upgrade your TaxBit plan. NFT Suite features are only included in the Plus+ and Pro plans.

5. TaxBit mobile application

Currently, there is no mobile app for TaxBit, nor is there any information that a mobile app is being developed. However, TaxBit can be used on a mobile phone through an internet browser. TaxBit works best when used on a desktop computer.

How to become a TaxBit user?

To start using TaxBit, you must be 18 years of age or older and live in the United States or one of its territories. To register with TaxBit, please follow the steps below:

  • Go to the official TaxBit website and click on the Register button.
  • Fill out the form and provide your personal information.
  • To continue the registration process, the software determines the type of tax rate applicable to your capital gains from the previous tax year (this amount is calculated based on your income and residence status).
  • Connect all your exchange accounts to the TaxBit platform. It will import all transactions from those exchanges.
  • Once all the required information has been collected, an overview of your crypto tax status will be provided.

Crypto Accounting Supported Exchanges

Taxbit Review- Free is Gemini Preferred Tax Software

TaxBit supports any exchange that allows a CSV export of transactions through a secure read-only API interface. TaxBit supports most of the world’s most popular cryptocurrency exchanges, below is a partial list:

  1. Binance
  2. Binance US
  3. BitStamp
  4. BlockFi
  5. Bitfinex
  6. Coinbase and Coinbase Pro
  7. Uphold
  8. OkCoin
  9. Kraken
  10. and Many, many more!

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