Regardless of how you interacted with crypto during the past year, you need to fill a tax return report at the end of every tax year. There are different reports across different authorities. Also, various events might have separate reports. But, during this post, Lukka review, you’ll learn how to automate crypto tax calculations once and for all.
Lukka is a crypto tax calculator; how do they work? In brief, tax calculators connect to your exchange through an API key or to your wallets through a public key. After that, your transactions’ data is passed through to Lukka, and then the system starts calculating and filling reports within a few moments. Of course, in this article, you’ll learn the whole process from A to Z.
Table of Contents
- About Lukka.
- Starting with Lukka.
Lukka is a team of top-performing data experts transforming post-trade blockchain data into easy-to-use information for business operations. Lukka is the first back-office crypto-focused technology company to receive AICPA SOC 1 Type 2 and SOC 2 Type 2 certifications.
Their product, Lukka essentials, aims at easing traders’ lives by automating crypto tax filling at one simple UI. And for further functionality, Lukka has a sleek crypto portfolio tracker where you can link all your exchanges together.
Also Read: Blockpit review and best alternatives.
In the following part of Lukka review, we’re looking at Lukka’s features that really dragged our attention about the platform.
On raw transactions feature, you’ll be able to see your raw trade data. That includes your bought or sold assets, their amount, and any relevant information.
That feature enables you to review and adjust your transactions by applying gain/loss processing treatments and taxable implications. Furthermore, you can use filter boxes to filter your transactions and potential errors.
By using this feature, you can view snapshots of your balances across your connected exchanges. Moreover, data is pulled directly from your exchange through API connectivity.
Lukka can accept data from any exchange or wallet provider; thus, you’ll find no problem transferring your data to Lukka. Also, here’s a list of the major supported exchanges by Lukka:
Is Lukka Easy to Use?
Yes, Lukka holds a clear interface. Novice users won’t find problems interacting and using Lukka for the first time. Also, everything is well categorized and easy to access.
Is Lukka Safe?
Of course, Lukka’s website has an SSL certificate. And your exchange account is connected through an API key which also means extra security for your account. You can always change the API key’s permissions.
What Tax Reports Does Lukka Support?
You can fill any of the following crypto tax reports on Lukka:
- Ordinary Income
- Capital Gains
- Unmatched Disposals
- Unrealized Holdings
- All Tax Forms
- Form 8949
- Schedule 1
- Ordinary Income
What Are Lukka Plans?
Fortunately, Lukka is completely free to use with no limitations.
Starting with Lukka.
In the following part, we’ll demonstrate how to start with Lukka, create your account, connect your exchange, and fill your first report.
Create Your Account.
Firstly, visit Lukka’s website, click on ‘Sign-up.’ Then, submit your email, and choose a strong password. You can also proceed with Google or Facebook.
Verify Your Account.
After signing up, visit your email and check for a verification link from Lukka’s team to confirm your account.
Connect Your Exchange.
During the sign-up process, Lukka will ask which exchange would you like to connect in the next step.
Now, after completing your sign-up process, click on ‘Accounts’ on the top menu; after that click on ‘Add API keys’ next to your previously selected exchange. Visit your exchange and generate API keys. Then, click on ‘Run API.’
Generate A Tax Report.
Finally, to generate a tax report on Lukka, click on ‘Tax reporting’ on the top menu; after that, it’ll take a few minutes to calculate your taxes. Eventually, you’ll see a list of generated reports that you can download.
In a word, Lukka is an amazing free crypto tax calculator. It’s completely free to use with no limitations at all. However, there are a few things that we didn’t like about Lukka, more in Lukka pros and cons.
- Free to use
- Easy and simple
- No transactions limit
- Supports wide range of exchanges.
- Doesn’t integrate with TurboTax
- No mobile app
Of course, Lukka would be great and enough for some traders. But, if you’re more expert, you probably need a more advanced crypto tax calculator than Lukka. After Lukka review, we’ll provide you with the best alternatives for Lukka that we’ve reviewed as well.
At Node40, they sit at the intersection of industry and government compliance to demystify cryptocurrency treatment (e.g., Bitcoin) across its many governing bodies.
Connect major exchanges like Coinbase, Binance, and BitMEX with automatic API import, or upload a trade history CSV from any exchange.
Blockpit has been dealing with the topic of compliance with cryptocurrencies. They have developed a software platform that combines all crypto sources to simplify processes resulting from complex regulations and tax laws.
Accointing is the accounting, tracking, and tax optimization tool for Bitcoin and other cryptocurrencies. They are a team of passionate blockchain investors and believers that have come together to create the most comprehensive and simple-to-use taxes and tracking tool in the blockchain space.
Finally, we’d love to hear from you in the comments. Communicate with us and say your opinions on this Lukka review.