With the complex nature of cryptocurrency taxes its a topic that many avoid talking and thinking about even more than regular taxes. Fortunately, there is a service available to ease your worries.
In 2017 Coin Ledger was founded to assist crypto users with their taxes. With the goal of making cryptocurrency tax reporting easy for everyone, Coin Ledger launched its signature platform CryptoTrader.Tax.
Cryptocurrency tax software built to save you time and maximize your refund.
CryptoTrader.Tax takes away the pain of preparing your bitcoin and crypto taxes in a few easy steps. Start by connecting your exchanges and importing your historical transactions.
Easily Import Historical Data
CryptoTrader.Tax integrates directly with your favorite cryptocurrency platforms to make it easy to import your historical transactions. Whether you’re trading, mining, staking, or earning interest, you’ll be able import your transactions and calculate your taxes with ease.
Partnered with the largest tax preparation platform to make it easy for you to E-File your crypto gains and losses with your full tax return. Your reports can be directly imported into TurboTax Online, TurboTax Desktop, TaxAct, and many other tax platforms!
There’s a limited amount of Bitcoin. When Bitcoin was founded, the creator of the cryptocurrency only made 21 million. Right now, over 16 million are in circulation, however, more are being mined every day.
Fact #2 – It’s Important To Never Misplace Your Password/Keys
You store your Bitcoins in a digital wallet. You can log in and check your balance. One thing, though, you have to be very careful when it comes to storing your password and key, which is what allows you to access your digital Bitcoin wallet. If you lose this access, you’ll lose access to your Bitcoin wallet and the amount you have inside.
Fact # 3 – You Must Report How Much You Own
Regulations for Bitcoin are in fact still in the making, however, the U.S. government has declared that Bitcoin – as well as other cryptocurrencies – are in fact capital assets, just like bonds and stocks. Keep in mind that if you don’t account for the Bitcoins you are in possession of, you could be on the hook for tax evasion.
Fact # 4 – It’s Created Through Blockchain
Bitcoin is created through process is called mining and the core technology behind it is called Blockchain technology. It’s dependent on a network of nodes, ensuring the integrity of transaction history by achieving consensus.
Fact #5 – The Inventor Is Technically Unknown
Although Satoshi Nakamoto has been credited with developing Bitcoin in 2009, we know that most certainly this is a pseudonym for a single person or a group of people who were working on the idea. Nakamoto vanished from the Internet back in 2011, leaving only a few clues as to who he/they might be.