Did you know that you are required to pay tax on tokens that you have sold or traded? Unless you’re a long-term HODLer, moving digital and cryptocurrencies are treated as taxable actions. Even Bitcoin miners need to report their tokens for taxable income.
Tax on cryptocurrencies
We all know that getting your taxes done in fiat can be a tiring process. Getting the crypto taxes done is another story. With the amount of data generated from the buys, sell, trades, and transfers; collecting it in a tidy manner might be more than a little frustrating.
Luckily, there are companies and software developed to make the process of filing a report smooth and painless. CryptoTrader.Tax is one of these companies which is dedicated to taking the taxing process from the already demanding life of crypto trading. The software is built to help both traders and professionals file and report their gains and losses with accuracy. They even partnered with Turbotax this year to bring cryptocurrency tax reporting to mainstream audiences.
Co-founder of CryptoTrader.Tax David Kemmerer acknowledges the difficulty of accumulating the data necessary:
“One of the biggest headaches when it comes to doing your crypto taxes is figuring out your cost basis for every single trade you make. We built CryptoTrader.Tax to completely automate that process.”
The key vision that CryptoTrader.Tax holds is to make the world of cryptocurrency available to more people. This means making it easier for citizens to track and record their taxes without having to worry about inaccuracies. CryptoTrader.Tax has an army of experienced accountants ready to tackle the tricky task of taxation within minutes. The software offers a thorough system which is built to catch errors, which makes the accounting both reliable and accurate for time and money-saving.
“Traders often utilize many different exchanges, platforms, and tools to transact and trade cryptocurrencies. Due to the way the U.S. and IRS classifies Bitcoin and other cryptocurrencies, as property for tax purposes, it becomes difficult for traders to accurately track the necessary data needed for tax reporting. We built CryptoTrader.Tax because as cryptocurrency traders ourselves, we were completely overwhelmed with the tax reporting process. Our software is built to make your life less stressful.”
The platform offers a free sign-up, with no credit card registration required.