CryptoTrader.Tax, a piece of software that helps crypto investors with their crypto taxes, is now integrated into Intuit TurboTax, a popular piece of tax-filing software for Americans. The announcement of the integration came in a press release on April 4, just before the American federal tax deadline of April 15.
Now, users of CryptoTrader.Tax will be able to export their tax calculations from the software directly into TurboTax’ filing system. “You simply import your cryptocurrency trades into the platform using the technology we have built,” said CryptoTrader.Tax co-founder David Kemmerer. “The software will automatically crunch your capital gains and losses numbers and generate the necessary tax documents including the IRS form 8949.”
Around tax season last year, news emerged that very few crypto traders actually filed taxes on the crypto trading activity.
— LoneWolf (@LWDayTrading) January 23, 2019
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However, many have speculated that the lack of filing is largely due to ignorance rather than negligence as the IRS’ rules on crypto filings are still somewhat unclear.
Basically, though, US-based crypto traders owe property taxes on their cryptocoins, but only if they’ve been traded (no taxes are owed on coins that have been “hodled” throughout the year.) On coins that have been traded or sold, however, filers are required to report the original cost of the coins, their market value when they were traded, and the gain or loss associated with each transaction.
TurboTax Racks Up Crypto Partnerships
Apparently hoping to improve the rate of filing on cryptocurrency taxes, Coinbase added tax-related resources for its American users in January, including an integration feature with TurboTax.
TurboTax, the popular tax filing software, will be integrated into the Coinbase platform for customer filing needs. The integration will work directly through Coinbase’s retail platform, or its Android and iOS apps, the exchange said:https://t.co/26EWDTWqUQ
— bitJob MarketPlace (@BitJob_Team) January 25, 2019
In February, Turbotax also integrated with CoinsTax, LLC. The integration will allow users to import trading data directly from two other major exchanges: Gemini and Poloniex.