Should You Use Crypto Tax Made Easy for Your Cryptocurrency Investments?
Cryptocurrency is widely considered a great way to invest your money and potentially make a lot back, but it is risky. Another thing people might not understand about cryptocurrency is that the money you earn through it is taxed. Working out your tax return is difficult enough as it is, but once you throw cryptocurrency and other investments into the mix, you can end up with a complicated tax return. This is one of the challenges you need to overcome if you want to trade cryptocurrency and make a profit.
Failing to accurately report your income and correctly file your tax return can lead to legal and financial problems, so it’s important to get it right the first time. Crypto Tax Made Easy promises to, you guessed it, make your crypto tax returns much easier. But is it a good product to use for people trading in crypto? Read on to explore what Crypto Tax Made Easy offers and whether it can be viable for your investments.
What is Crypto Tax Made Easy?
The idea behind Crypto Tax Made Easy is exactly what you’d expect from the name. It sees a pain point, which is the sometimes complicated task of reporting your income through cryptocurrency investment, and seeks to solve that problem for you.
Crypto Tax Made Easy is a tax accounting service designed to help investors, DeFi users, NFT traders, business owners, and high-volume crypto traders. This makes it brilliant for people with more complicated portfolios who otherwise struggle to work out their taxes.
The first step to using this service is to apply for a free quote, where their experienced team will look at your portfolio and work out how much you should pay for their tax services. From there, they will help turn your transaction history, no matter how messy it is, into a clean tax report and a summary that’s ready to file.
Benefits of Crypto Tax Made Easy
Here are a few reasons why you might consider using Crypto Tax Made Easy.
Reduces the risk of making mistakes
The most compelling reason to use Crypto Tax Made Easy or any crypto tax accounting service is that it completely removes the chance of you making mistakes when you report your earnings and fill in your tax returns. This can mean that you actually save a lot of money on your taxes, because you don’t miss potential tax breaks or expenses that would reduce how much you actually need to pay in taxes.
This also means that you’re less likely to accidentally underpay on your taxes, which can leave you open to fines and other costs.
Free quotes for your portfolio
One good feature of Crypto Tax Made Easy is that you don’t have to use their services when you get a quote. You can get a free quote for your portfolio, which allows you to work out how much the services will cost and factor it into your decision-making.
Saves time and provides a complete service
Most people aren’t trained accountants, and even fewer people happen to be trained crypto tax accountants. If you have complicated accounts and transactions, it can take a huge amount of time to work through them.
But Crypto Tax Made Easy gives you the help you need. This can save a huge amount of time, resulting in reports that can be submitted right away. You can also learn how to track your crypto transactions more accurately, meaning your next return will be even easier to fill out.
If you’re working with an ordinary accountant, this reduces their workload and allows you to simply hand over a crypto tax report to add to the rest of your report. Or, if you self-file, you can import the report as it is.
Ideal for complex portfolios
If you have a complicated portfolio, it can be even more daunting to have to fill out your tax return or keep track of your transactions, especially if you haven’t been keeping track of them so far. If you’re catching up on past years’ filings, need help preparing documentation, or you’ve received IRS crypto notices and don’t know where to start with working through your assets and documents, Crypto Tax Made Easy can, well, make it easy to solve.
Great track record
You don’t want to use an untested service, especially for something as important as your tax returns. Crypto Tax Made Easy has been in the business for a long time, and has a lot of previous clients. This means you can check out reviews and work out whether it’s a service you’re willing to trust.
Potential Downsides of Crypto Tax Made Easy
Not every service is perfect, and it’s important to explore some of the potential downsides so you can make an informed decision.
Not designed for beginner investors
Crypto Tax Made Easy is designed for complicated or messy portfolios. If you’ve just gotten started with trading, you probably don’t have a large portfolio yet. In this case, you might not need such an extensive service.
However, Crypto Tax Made Easy can teach you how to track your portfolio and transactions, as well as accurately fill out your report, so it could still be worth a look as an educational tool.
Can’t guarantee tax savings
Crypto Tax Made Easy can reduce your chance of overpaying on your capital gains tax and potentially save money, but it’s important to note that this isn’t a guarantee.
Not the cheapest service
Because Crypto Tax Made Easy offers such a complete and comprehensive service, it’s not the cheapest crypto tax service out there. It offers more than DIY software or generic tax preparers, which means that you pay more.
Final Thoughts
Crypto Tax Made Easy offers a very complete service that’s ideal for a few different types of traders. As a general rule, if you have a very complicated portfolio or a portfolio with a lot of history and transactions, this could be one of the best crypto tax accounting services out there. It’s perfect for these slightly messier cases.