New Crypto Tax Solution Makes Accurate Calculations Quick and Easy
Organizing taxes has always proven to be a difficult process for businesses and individuals during the annual tax season. With cryptography, this process becomes even more complicated.
Although cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) seem similar to fiat currencies, in the eyes of the taxman, these digital assets should be treated differently. This means that cryptocurrency transactions may need to be reported as capital gains or losses.
This is why it is important to track crypto transactions over time. Software like Cointelli makes it easy for individuals to file crypto tax returns and tax professionals to offer crypto tax preparation, calculations, and assistance to their individual and small business clients.
Understanding which taxes apply in which geographies and generating reports efficiently can help eliminate the stress that typically accompanies calculating taxes. As more organizations accept cryptocurrency payments and individuals get paid in digital assets, it becomes increasingly important for everyday people to start deciphering the world of crypto taxes. With around 16% of the adult population investing in cryptocurrencies, and this market is expected to see massive growth, the US government has drafted cryptocurrency tax regulations.
Reporting complex transactions on a number of platforms can be time-consuming and error-prone when it comes to recording the right level of detail. There are so many boxes to check correctly that trying to analyze all the data manually can quickly become frustrating. Simplified all-in-one software like Cointelli allows users to minimize crypto tax errors and also makes the process more efficient.
So how exactly can people unravel the complexities of filing crypto taxes? Cointelli offers an all-in-one crypto tax solution that solves practical difficulties and makes the process of reporting crypto tax as easy as possible while maintaining a very high level of accuracy. The Cointelli team has designed a software package for crypto taxes that allows you to view your tax return and correct any errors in a simple and transparent way.
“Crypto exchanges are increasingly reporting user transactions to the IRS, so the need for crypto tax reporting is there,” said Cointelli CEO Mark Kang. “However, existing solutions are often expensive, inaccurate and not compatible with enough global trade. Cointelli puts an end to frustration by providing reliable, easy to use and affordable software for the average investor.
There are a number of crucial steps when reporting crypto taxes using software, and these involve extracting and importing transaction data from multiple exchanges and wallets. To ensure accuracy, Cointelli supports importing from a large number of exchanges, including Coinbase, Binance, and Kucoin. Individuals and organizations should evaluate whether or not their software allows multiple ways to import this data. Otherwise, using the software for the sake of efficiency becomes pointless. Cointelli offers a range of easy methods for importing data from different platforms, which makes it very user-friendly for all types of users.
Parties should also be careful when calculating taxes for transactions made on different platforms. For example, Bitcoin may be marked as BTC on some platforms but as XBT on others. Most cryptocurrency tax software platforms ignore details like this and rarely used transaction types when importing transaction data. This means that some data can slip through the cracks, leading to clients filing tax returns with critical information missing.
Tax reporting requirements are becoming stricter around the world. Cointelli software, designed by tax professionals, allows traders to manage their crypto investments while filing compliant tax returns. It is also offered as a featured service by the prominent US-based digital currency platform, Uphold.
Warning. Cointelegraph does not endorse any content or product on this page. Although we aim to provide you with all important information we may obtain, readers should do their own research before taking any action related to the company and take full responsibility for their decisions, and this article cannot no longer be considered as investment advice.