LibraTax has partnered with BitPay to streamline the calculation of tax obligations for supported merchants.
Launched last year, LibraTax’s solution says to automate the reporting of digital currency transactions for tax purposes. Supported digital currencies include bitcoin and Ripple’s XRP. The software is capable of importing transactions directly from the blockchain, and with some user imports, can optimize tax obligations.
Until now, Libra’s partners consisted mainly of digital currency exchanges and wallet providers. These integrations can assist in, for example, calculating the capital gains/losses by bitcoin traders.
With the BitPay integration, merchants can have their actual sales figures imported and their tax obligations automatically calculated in fiat-based terms.
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The IRS’s March 2014 ruling deemed virtual commodities as property, not currency, which introduces an additional layer of complexity to every bitcoin-based transaction. Said Jake Benson, LibraTax founder:
“Essentially, any transaction involving Bitcoin is a realization event that triggers a reportable gain or loss.”
Libra’s packages are priced at $19, $49 and $99 for its regular, business and pro offerings, respectively.
There are also future plans to integrate with Zero, Quickbooks and other accounting software.