Best For

  • Accountants and Organizations
  • Professional Crypto Asset Investors

LukkaTax is a financial software that enables you or a tax professional to calculate the taxes owed on your net crypto asset gains. Users can upload their crypto asset transactions for free, or choose to pay for a membership plan to create a crypto tax report. Lukka was initially founded in 2014 under the name Libra Services Inc. and launched their LukkaTax crypto tax software in 2019.

LukkaTax Cryptocurrency Tax Software - Comprehensive 2021 Review

Overall Score:

9
Trusted
Compatibility:
7 of 10
Value:
8 of 10
Ease of use:
9 of 10
Transaction Types:
10 of 10
Special Features:
10 of 10
Customer Service:
9 of 10

LukkaTax Cryptocurrency Tax Software Overview

Platform TypeCPA Professionals
Exchanges Supported39
Countries SupportedAll Countries
Currencies Supported3700+
Pricing Plans$39.95 Annually
Payment MethodsCredit Card, Debit Card
Transaction CountUnlimited
Tax Return AmendmentsYes (2017-2019)
Portfolio TrackingYes
Personalized AccountingYes
Customer ServiceChat
PromotionsFile 2020 tax reports for just $19.95.

LukkaTax Cryptocurrency Tax Software Features

TurboTax Support

No

Tax Act Support

No

Margin Trading

Yes

Tax Loss Harvesting

Yes

DeFi Support

No

International Taxes

Yes

Trade Data Recovery

No

End-of-year Report

Yes

IRS Form 8949

Yes

Audit Trail Report

Yes

FBAR Filing

Yes

Schedule D

Yes

How Does LukkaTax Work?

LukkaTax enables you to upload the files containing your crypto transaction history from various exchanges or wallets in order to produce an accurate crypto tax form. This software only accepts the CSV file type and does not support API integration.

Once you have registered a new account with Lukka, you will automatically be presented with the user dashboard seen below. After filling in the relevant information in Step 1 and pressing the "Start" button, you will be prompted to upload your crypto transaction files in Step 2.

Step 3 will enable you to manually adjust any of the transaction information you uploaded in Step 2. As seen below, the"Save" button in the bottom right-hand corner allows you to save your progress and return to this step at a later date.

After making any necessary adjustments to your crypto transaction history, the software will then optimize the transaction data during Step 4 and complete a comprehensive crypto tax form in Step 5.

Assuming you have already gathered the necessary transaction files and they are ready to upload, this entire process can be completed in under 10 minutes.

Available LukkaTax Plans

The majority of crypto tax software programs offer many different membership plans, providing users access to various helpful features according to their membership level. LukkaTax is unique in that the service offers only one membership plan of $39.95 annually that will unlock the ability to utilize all of the software's features upfront. All valid credit and debit cards are accepted as payment methods.

There is no limit to the number of transactions that can be uploaded once you have purchased the LukkaTax membership plan. There is also no maximum amount of exchanges from which you can upload your transaction history.

Those who do not wish to pay for a membership plan can still use the LukkaTax software to upload their transaction history and view their gain/loss summary for free. The major disadvantage of using the free version of the software is that you will not be able to download a detailed tax report that incorporates all of the uploaded data.

Exchanges & Wallets Supported

LukkaTax enables users to upload all crypto asset transaction history files from just 39 different crypto exchanges. This number places LukkaTax at an immediate disadvantage when compared to the top crypto tax software programs, which are compatible with hundreds of crypto exchanges. Another disadvantage of this service lies in the fact that Lukka does not support the use of API information when uploading your transaction history.

One of the positive aspects of the LukkaTax software is that you can upload transactions from over 3,700 different crypto assets from the various exchanges that are supported. Some of the most popular names on the list of accepted exchanges include Kraken, Binance, Coinbase, and Kucoin.

LukkaTax Security

LukkaTax is currently the only crypto tax software that has received SOC 1 Type 2 certification, which audits how the company operates its controls over time. The software also features multi-factor authentication for your account, requiring you to enable access through multiple devices in order to log in. This being stated, it is concerning that the company does not mention data encryption anywhere on its website or privacy policy.

LukkaTax and Cryptocurrency Mining

All mining transactions can be uploaded using the Step 2 file upload page shown below. Note that most mining transactions will initially be labeled as deposits; you will need to change each label to “Mining Income (Income & Acquisition)” using the drop-down menus available in Step 3.

LukkaTax and Airdrops

Crypto airdrops are supported by the LukkaTax software. As with mining transactions, airdrops require an extra step in order to be properly represented in your final tax report. Once you have uploaded the airdrop transactions in Step 2, you will need to manually adjust them using the pull-down menu of the "Treatment" column in Step 3, and label them as “Airdrop (Income and Acquisition)”.

LukkaTax Customer Service

The LukkaTax customer service department may only be contacted through the live chat feature. To begin using the live chat, simply click on the blue and white chat bubble located in the lower right-hand corner of the FAQ Page. The average response time is usually less than one day.

LukkaTax and Margin Trading

Margin trading is fully supported by the LukkaTax software and can easily be included in your final tax report. Once any margin trading transactions are uploaded, you will need to manually label these trades in the “Margin/Shorting” column of the Step 3 adjustment page.

Tax Loss Harvesting

Any tax loss harvesting will be completed in Step 4 after you have uploaded and manually adjusted your crypto transactions. Using the HIFO method (Highest-In, First Out), the LukkaTax software will utilize a tax harvesting strategy that delays your capital gains and decreases the amount of crypto taxes owed.

LukkaTax Cryptocurrency Tax Software Alternatives

Rating9/109/108/10
Pricing$39.95 Annually $65 - $1,999 Annually$0 - $49.99 Monthly
Margin TradingYesYesYes
DeFi SupportNoYesYes
Personalized AccountingYesYesYes
Tax Return AmendmentsYes (2017-2019)Up to 10 yearsNo
Tax Loss HarvestingYesYesNo
Learn MoreReviewReviewReview

FAQ

How much does LukkaTax cost?

Can LukkaTax be used by tax professionals?

Which currencies does LukkaTax support when calculating tax reports?

Does LukkaTax offer support for DeFi transactions?

Can LukkaTax be used to amend prior years’ tax returns?

Terms To Know

Form 8949

Tax form for crypto asset income.

Tax Loss Harvesting

A strategy used to minimize the taxes owed on capital gains.

Capital Asset

Any type of property owned by an assessee, such as land, mutual funds, or cryptocurrency.

Airdrop

Zero-cost basis crypto sent to users of an exchange or protocol, usually as a promotion or a reward.

HIFO Method

A form of tax harvesting that delays capital gains in order to minimize the amount of taxes owed.

Pros and Cons

Pros

  • Easy Access to All Features - Users are not required to pay extra to unlock special features of the LukkaTax software, as all features are included in one plan.
  • Software Versatility - The LukkaTax software enables users to include many different transaction types, such as margin trading, airdrops, staking, mining income, staking income, and transfers.
  • Simple Pricing Plans - Many other crypto tax software programs offer a plethora of different membership plans, which can be confusing for novice users. LukkaTax offers one all-inclusive membership plan, as well as the option to use the software for free.
  • Customer Service - Although the customer service department may only be contacted via the live chat feature, the response time is usually less than a day. The support representative can answer any questions that you may have about their software.
  • Crypto Assets Supported - LukkaTax supports over 3,700 different crypto assets, which is more than most other crypto tax softwares available.

Cons

  • Price Increase - When the product launched, the LukkaTax membership plan was priced at $9.95 annually; soon after, the price was raised to $19.95. Today, membership now costs $39.95 annually.
  • API Not Supported - Currently, only CSV files can be used when uploading transaction data.
  • No Tax Filing Compatibility - There is currently no integration between LukkaTax and popular tax filing software programs, such as TurboTax or TaxAct.
  • Only USD Supported - Users can upload their transactions in foreign currencies, but all LukkaTax reports will be calculated using US dollars.

Conclusion

LukkaTax is a relatively inexpensive crypto tax software that supports many different transaction types. The sole membership plan that is offered will unlock all of the software’s features, while novice crypto investors can choose to use the software for free.

With this being said, Blockfer does not recommend LukkaTax due to the restrictive nature of the software. Cost basis analysis can only be done in US dollars, thus limiting its capabilities. Furthermore, the software is not compatible with popular tax filing programs such as TaxAct, and API integration is not supported.

As an alternative, Blockfer recommends using a less restrictive crypto tax software, such as TokenTax or CoinTracker.

Company Facts

Legal NameLukka, Inc.
Incorporated CountryUnited States
HeadquartersNew York
Year Founded2014
CEOJake Benson
Total Employees11-50
Regulators
Links Website, Twitter, LinkedIn, Crunchbase
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