CoinLedger review – Crypto tax software

CoinLedger is software for calculating tax liability for cryptocurrency in 16 countries. Most of the features are free but you must pay for a tax report. Read on for the full Coinledger review..

The Good

  • According to reviews, CoinLedger has an excellent customer service support team
  • CoinLedger is easy to use and it is easy to import your data. After you connect to the exchange or wallet that you are using, you will be able to look at all your transactions in one place.
  • Many of CoinLedger’s features are free to use, so you can still keep track of your crypto transactions for free even if you don’t require a tax report.
  • Coinledger has a blog with heaps of helpful articles related to crypto and taxes

The Bad

  • Although you can import all of your data to CoinLedger, you will have to pay for a report, even if you are only a hobby trader.
  • CoinLedger does not currently allow users to pay for their services with crypto or any currency other than USD.

Verdict: Easy to use, many features are free and great customer service. Worth trying for free but there may be better platforms out there..

Introduction

It is not always easy to calculate your tax liability when you trade in cryptocurrencies, particularly if you do a lot of trades. CoinLedger assists you in calculating the amount of income you have earned through your trades. Because each country has its own tax laws, CoinLedger has software that is able to calculate all of your income even if you use more than one exchange or wallet. Users from 16 different countries have access to the CoinLedger software and although many of the features are free, you will have to pay for a tax report which has a different price depending on how many transactions you have made during the financial year.

coinledger logo

What is CoinLedger?

CoinLedger assists users in calculating their tax liability related to cryptocurrency. CoinLedger can integrate with all major cryptocurrency exchanges to calculate all of your income from cryptocurrencies. In order to know what your tax liability is, you will need to know the date of the transaction, its value, what the transaction was for, and who the other party was. This is not easy, especially if you are doing a number of trades. CoinLedger can do this for you when you import transactions to your CoinLedger account.

Generate your crypto gains, losses, and income reports in any currency. These reports can be used to complete the relevant tax forms for your country.”

coinledger.io

Who uses CoinLedger?

CoinLedger is a useful tool for cryptocurrency traders and tax professionals. It helps users to keep track of all of their transactions and to generate tax reports via cryptocurrency exchanges or public wallet addresses. Keeping track of transactions can be difficult, and anyone who trades in cryptocurrencies may be liable for taxes. CoinLedger makes it easy for users to calculate their tax position. If you just want to see all of your transactions in one place, then CoinLedger could be useful for you, even if you don’t need to know how much tax you need to pay.

How does CoinLedger work?

Once you have an account with CoinLedger you can import your cryptocurrency transactions to CoinLedger. CoinLedger will classify your transactions into different types depending on the taxes in your country. You can also make individual adjustments manually. Coinledger will track the original cost of your cryptocurrency assets as you move them from one wallet to another. You will then be able to view your capital gains and income. You will also be able to download a tax report. Unfortunately, the tax report is not free even if you have only done a few trades during the financial year.

how coinledger works
Coinledger can simplify your crypto taxes for you, and most features are free, except for a full tax report

In what countries does CoinLedger work?

CoinLedger works in 16 different countries: Australia, Austria, Canada, Denmark, France, Germany, India, Ireland, Japan, New Zealand, South Africa, Spain, Sweden, Switzerland, United Kingdom, and the United States.

Is CoinLedger free?

Some parts of CoinLedger are free. You can import your cryptocurrency transaction history, view your net capital gains and losses, and track your portfolio. The only thing you need to pay for is the full tax report.

How much does CoinLedger cost?

The price of the report will differ depending on how many transactions you have made during the financial year. There are 4 levels of pricing:

1.   Hobbyist with 100 transactions – $49

2.   Day Trader with 1,500 transactions – $99

3.   High Volume with 5,000 transactions – $199

4.   Unlimited – $299

The CoinLedger website does not specify which currency is used, but it seems to accept only US dollars.

coinledger pricing
Coinledger pricing

What exchanges does CoinLedger support/integrate with?

CoinLedger integrates with most major cryptocurrency exchanges and wallets. For a more detailed list for 2022, see this article1.

crypto platforms, coinledger
You can import crypto from any platform

Advantages of using CoinLedger

  • According to reviews, CoinLedger has an excellent customer service support team, so if you have any problems with using the app, you will be able to easily get help in solving them.
  • CoinLedger is easy to use and it is easy to import your data. After you connect to the exchange or wallet that you are using, you will be able to look at all your transactions in one place.
  • Many of CoinLedger’s features are free to use, so you can still keep track of your crypto transactions for free even if you don’t require a tax report.
  • Coinledger has a blog with heaps of helpful articles related to crypto and taxes
coinledger blog
There are heaps of helpful articles on the Coinledger blog, related to taxes and crypto

“CoinLedger integrates directly with your favorite platforms to make it easy to import your historical transactions. Whether you’re trading, earning interest, or buying NFTs you’ll be able import your transactions and calculate your taxes with ease.”

coinledger.io

Disadvantages of using CoinLedger

  • Although you can import all of your data to CoinLedger, you will have to pay for a report, even if you are only a hobby trader. Some crypto tax software apps provide a free service for those who don’t do a lot of trading. 
  • CoinLedger does not currently allow users to pay for their services with cryptocurrencies or any currency other than the US dollar.

FAQs about CoinLedger:

Where is CoinLedger located?

Coinledger used to be called CryptoTrader.Tax and was founded by David Kemmerer, Lucas Wyland, and Mitchell Cookson in 2018. There is no available information about the location of CoinLedger, but all three founders are from the USA. The domain is .io which is assigned to the British Indian Ocean Territory, but this does not mean that they are located there. Read this article to find out what .io means2.

Is my data safe with CoinLedger?

CoinLedger uses 256 bit encryption. Their servers are located within their own virtual private cloud3 (VPC) and their network access control lists (ACLs) help to prevent unauthorised access.

Is it easy to use CoinLedger?

CoinLedger is very easy to use. You can sign up by entering your personal information. You will also need to verify your account and choose your country and the currency. After that you can import your transactions from your exchange or wallet. Because CoinLedger integrates directly with many different platforms, it is easy to import your transactions. CoinLedger4 provides easy to understand instructions and their customer service team is very helpful. To compare CoinLedger with other similar software, see this review on Finder5.

Can I claim crypto loss on tax

According to the ATO6, you can claim a capital loss if you can provide evidence of ownership and that you have lost access to your crypto assets. Read this article to find out more about how to recover your lost crypto assets7.

Conclusion

For cryptocurrency traders, calculating your tax liability can be difficult. Software like CoinLedger can make these calculations much easier. You can also read my reviews of Taxbit and Beartax, which are both platforms for managing your crypto tax.

CoinLedger allows users to track all of their cryptocurrency trades and keep the data in one place, even if they use more than one cryptocurrency exchange or wallet. Most of the features in CoinLedger are free, but you need to pay for the tax report. Even if you don’t want to pay for a tax report, you might like to try CoinLedger as it has very good reviews with many reviewers praising their customer service. After all, the last thing any of us want at the end of the tax year is a hefty tax bill. You can check out my Podcast with Minh HERE where we discuss everything tax related.

If you hold crypto, how do you manage your crypto taxes? Have you tried Coinledger or a similar platform? Let us know in the comments..

References:

1.   ‘Cryptocurrency Exchanges for CoinLedger’. SourceForge. Accessed online at https://sourceforge.net/software/cryptocurrency-exchanges/integrates-with-coinledger/ on 18 Dec, 2022.

2.   ‘What Does .io Mean: When to Use It, Pros and Cons, and More’. M. Mulidina. 1 Dec, 2022. Accessed online at https://www.hostinger.com/tutorials/what-does-io-mean on 18 Dec, 2022.

3.   ‘What Is a Virtual Private Cloud and How Does It Work?’. Tamal Das. 3 Feb, 2022. Accessed online at https://www.makeuseof.com/what-is-virtual-private-cloud-how-does-it-work/ on 18 Dec, 2022.

4.   ‘How CoinLedger Can Make You Tax Season Stress-Free’. Accessed online at https://coinledger.io/product on 18 Dec, 2022.

5.   ‘CoinLedger Review’. Billy Endres. Updated 21 July, 2022. Accessed online at https://www.finder.com.au/coinledger-review on 18 Dec, 2022.

6.   ‘Loss or Theft of Crypto Assets’. 29 June, 2022. Accessed online at https://www.ato.gov.au/Individuals/Investments-and-assets/Crypto-asset-investments/Transactions—acquiring-and-disposing-of-crypto-assets/Loss-or-theft-or-crypto-assets/ on 18 Dec, 2022.

7.   ‘Are Your Lost Bitcoins Gone Forever? Here’s How You Might Be Able To Recover Them’. James Royal. 11 Feb, 2022. Accessed online at https://www.bankrate.com/investing/how-to-recover-lost-bitcoins-and-other-crypto/ on 18 Dec, 2022.

8. https://coinledger.io/

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CoinLedger Review 2022 – Amazingly Simple and Useful Crypto-Tax and Tracking Software’. Zachary Green. 14 Dec, 2022. Accessed online at https://greeneryfinancial.com/coinledger-review/ on 18 Dec, 2022.

‘CoinLedger’. Accessed online at https://www.trustpilot.com/review/coinledger.io on 18 Dec, 2022.

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