Let’s be real—crypto taxes are a nightmare.
I spent three full days last tax season trying to reconcile my DeFi transactions, NFT flips, and staking rewards in spreadsheets. By the end, I had a migraine, a half-broken Excel file, and a looming IRS deadline. That’s when I finally caved and tried TokenTax—a crypto tax software built specifically for complex DeFi and NFT scenarios.
Spoiler: It saved me hours of manual work and probably an audit.
In this review, I’ll break down:
- How TokenTax handles DeFi liquidity pools, NFT sales, and cross-chain transactions (where most tools fail)
- My personal experience using it for a messy Ethereum + Solana tax year
- Pricing vs. competitors—is it worth it?
- Pro tips to maximize deductions and minimize IRS red flags
Why Most Crypto Tax Software Fails for DeFi & NFTs
If you’ve ever tried TurboTax or even CoinTracker for DeFi, you’ve likely hit these walls:
- LP tokens? Most software treats them as “disposals,” creating phantom gains.
- NFT sales with royalties? Good luck tracking cost basis across OpenSea, Blur, and private sales.
- Bridged assets? Missing transactions or double-counting is common.
TokenTax is one of the few platforms that actually parses smart contracts to classify DeFi actions correctly. Instead of guessing, it:
✔ Labels liquidity pool deposits/withdrawals as non-taxable (unless there’s impermanent loss)
✔ Auto-calculates NFT cost basis, including gas and platform fees
✔ Supports 40+ chains, so your Arbitrum and Solana transactions don’t get lost
How TokenTax Saved My Sanity (Real Testing Notes)
1. DeFi Tracking That Actually Works
I connected my Ethereum wallet (MetaMask) and Solana (Phantom). TokenTax:
- Auto-detected my Curve Finance LP positions and correctly logged deposits/withdrawals
- Flagged my Uniswap swaps as taxable events (most tools miss slippage adjustments)
- Even caught my Aave loan repayments and labeled interest paid as deductible
Pro Tip: Use their “DeFi Wizard” to manually review complex transactions. I found a few misclassified MEV bot trades that I fixed in minutes.
2. NFT Tax Handling (Finally, Accuracy!)
I sold 12 NFTs across OpenSea and Magic Eden. TokenTax:
- Pulled in mint costs, royalties earned, and sale prices
- Calculated cost basis including gas fees (critical for reducing gains)
- Generated a clean IRS Form 8949 with all sales categorized
Watch Out: If you traded NFTs peer-to-peer (e.g., via Discord), you’ll need to upload those CSV files manually.
3. Cross-Chain & Staking Made Simple
- My Ethereum → Polygon bridge transfers were tracked without double-counting
- Solana staking rewards were auto-classified as income (at fair market value)
- Supported obscure chains like Avalanche and Fantom—no more spreadsheets
TokenTax Pricing: Is It Worth It?
| Plan | Cost | Best For |
|---|---|---|
| Hobbyist | $65/year | Simple traders (<500 transactions) |
| Investor | $199/year | DeFi/NFT users (<5K transactions) |
| Professional | $999/year | High-volume (50K+ txns, CPA support) |
Verdict: If you’re deep in DeFi or NFTs, the Investor plan pays for itself in time saved. For casual traders, CoinTracker might be cheaper—but it struggles with complex cases.
TokenTax vs. Competitors (Quick Comparison)
| Feature | TokenTax | Koinly | CoinTracker |
|---|---|---|---|
| DeFi Accuracy | ✅ Best | ⚠️ Spotty | ❌ Weak |
| NFT Support | ✅ Full | ⚠️ Basic | ❌ Minimal |
| Cross-Chain | ✅ Yes | ✅ Yes | ⚠️ Limited |
| CPA Help | ✅ (Pro plan) | ❌ No | ❌ No |
Winner: TokenTax for advanced users, Koinly for simpler portfolios.
Final Thoughts: Who Should Use TokenTax?
If you’re:
- A DeFi power user (LPs, yield farming, loans)
- An NFT flipper (royalties, gas tracking, P2P sales)
- Multi-chain (EVM + Solana + Cosmos, etc.)
…then TokenTax is the most accurate option I’ve tested.
For beginners with just Coinbase trades? You can probably get away with a cheaper tool.
Try TokenTax here (they offer a free preview before you pay).
FAQs
Q: Does TokenTax support memecoins and airdrops?
A: Yes—automatically labels airdrops as income and handles memecoin swaps.
Q: Can I file directly with the IRS?
A: No, but it generates IRS-ready forms (8949, Schedule D) for your accountant.
Q: What if TokenTax misclassifies a transaction?
A: You can manually edit any entry—crucial for complex DeFi moves.
