Cryptocurrency Tax Reporting Just Got A Lot Easier with TurboTax
CryptoTrader.Tax partners up with Tax Software giant Intuit TurboTax to bring cryptocurrency tax reporting into the mainstream
CryptoTrader.Tax, a cryptocurrency tax software development start-up, has partnered up with Intuit TurboTax. CryptoTrader.Tax is the most accurate way for cryptocurrency traders to calculate trading gains and prepare their cryptocurrency taxes. With this integration, consumers can now import their cryptocurrency tax data directly into TurboTax for easy filing.
The IRS has Started Cracking Down on Cryptocurrency
Over the past month, the IRS—the tax-collecting agency of the United States—has sent out more than 10,000 warning and action letters to suspected cryptocurrency holders and traders who may have misreported digital assets on their tax returns. Letters like the 6174-A for cryptocurrency, 6173 and CP2000 have appeared in the mailboxes of cryptocurrency traders throughout the country, and the tax agency is making it very clear that cryptocurrency needs to be reported on tax returns.
Cryptocurrency Taxes Breakdown
The IRS treats cryptocurrency as property for tax purposes. This means you are required to report your crypto capital gains and losses on your taxes. To properly report these transactions, you need to report the original cost basis, the fair market value in USD of the crypto at the time of the trade, and the amount of gain or loss you incurred for every cryptocurrency transaction. This becomes nearly impossible to do by hand as the historical USD price for all coins is not readily available. CryptoTrader.Tax automates the entire process for your bitcoin tax reporting.
“Users simply import their cryptocurrency transactions into the platform using the technology our team has built. The software automatically calculates your capital gains and losses numbers and generate the necessary tax documents including the IRS Form 8949,” said David Kemmerer, Co-Founder, and CEO of CryptoTrader.Tax. “We are excited to make crypto tax reporting even easier for our users with this TurboTax partnership.”
CryptoTrader.Tax has tens of thousands of users on its platform today and has processed over ten billion dollars in cryptocurrency transactions through its tax engine. Many traders are using it as a simple solution to automate their cryptocurrency tax reporting and stay in the good graces of the law.
CryptoTrader.Tax is available for free when getting started.
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