As the world advances, so does the cryptocurrency industry. Digital currencies and the underlying blockchain technology keep gaining real-life uses that enable them towards mass adoption. A piece of software that assists crypto investors with their crypto taxes, CryptoTrader.Tax, has integrated into Intuit TurboTax.
With the latest partnership, TurboTax seems to be moving rapidly into the crypto trading world. It is their 3rd crypto partnership in 2019. The announcement of this partnership came in an April 4th press release. The move is seen as opportunistic for the popular tax-filing software for Americans with the federal tax deadline of April 15th looming.
Now, the CryptoTrader.Tax users can export their tax calculations from the software and directly into the TurboTax’ filing system. Users just need to import their crypto trades into the platform via a certain technology according to David Kemmerer, the CryptoTrader.Tax co-founder. The software automatically crunches the capital gains and losses numbers then generates the required tax documents including IRS form 8949.
During the 2018 tax season, news emerged that just a small number of crypto traders were tax compliant. Nonetheless, many believe that the lack of filing majorly arises due to ignorance rather than negligence. The IRS rules on crypto filing are still somehow vague up to today.
The law states that all US-based crypto traders owe property taxes on their digital assets provided that they have traded. Any tokens “hodl’d” throughout the year do not attract any taxes.
On the other side, filers must report the original cost of the coins they have sold or traded. They also must report the coins’ market value when they were traded including the loss or gain associated with every transaction.
Other TurboTax Crypto Partnerships
Coinbase added tax-related resources for its US users in January trying to enhance the rate of filing crypto taxes. They included an integration feature with TurboTax. After that, Turbotax also integrated with CoinsTax, LLC in February. That integration enables users to import trading data seamlessly and directly from Poloniex and Gemini.