Two major crypto exchanges – Uphold and HitBTC – integrated support for CryptoTrader.Tax on their platform to ease the calculation process of gains and losses from crypto trading.
Founded in 2017, the Missouri-based tax software start-up focuses on crypto tax-related solutions. With its integration on the exchange platform, users can now easily export trade data to create tax reports.
Commenting on the development, David Kemmerer, co-founder and CEO of CryptoTrader.Tax, said: “We’re excited to be adding Uphold and HitBTC to the growing list of exchanges that we support. Simply import your cryptocurrency trades into the platform. The software will automatically crunch your capital gains and losses numbers and generate the necessary tax documents including the IRS form 8949.”
The taxation platform says that it has tens of thousands of users and has processed over $1 billion in digital currency transactions. The company has also integrated with Intuit TurboTax to step up its tax reporting capabilities.
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Crypto taxation – a major issue
Crypto taxation has become one of the key focus areas in the US market. Though the US Internal Revenue Services (IRS) released guidelines regarding cryptocurrency taxation, it did not cover all cases, which put traders in an uncomfortable situation.
Major firms are also pushing hard for proper crypto tax laws as it has become one of the key issues for various crypto lobby groups, Finance Magnates reported recently.
Meanwhile, ahead of the last tax filing season, many major exchanges integrated tax calculation support. Earlier this year, Coinbase partnered with TurboTax on both its retail and professional platform to ease tax filling process. Big four audit firm Ernst & Young also launched an accounting and taxation tool to facilitate accounting and tax calculations for cryptocurrency transactions for both retail and institutional investors.
However, the companies are not only confined to taxation filings as BitPay recently partnered with Refundo to facilitate federal and state tax refunds in Bitcoin for the United States’ taxpayers.