Tax regulation has always proved to be a challenging process for companies and individuals during the annual tax season. With encryption, this process becomes more difficult.
While cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are similar to fiat currencies, these digital assets should be treated differently in the eyes of the tax authorities. This means that cryptocurrency transactions must be reported as gains or losses.
This is why it is important to track crypto transactions over time. Programs like Cointelli allow both individuals to submit crypto tax returns and tax experts to provide cryptocurrency tax preparation, calculation and support for their individual and small business clients.
Understanding the taxes that apply in geography and effective reporting can help deal with the stress that usually comes with tax calculations. As more and more organizations accept payments in cryptocurrencies and individuals get paid in digital assets, it is becoming more and more important for ordinary people to begin to understand the world of cryptocurrencies. Almost 16% of the adult population invests in cryptocurrencies and this market is expected to grow rapidly, which is why the US government has introduced rules for the taxation of cryptocurrencies.
Reporting complex transactions across multiple platforms can be time consuming and can lead to many errors when it comes to registering the right level of detail. There are so many fields that need to be set correctly that it can quickly become frustrating to try to analyze all the data manually. Simplified global software such as Cointelli allows users to reduce errors related to cryptocurrency taxes, and also makes the process more efficient.
So how can people identify the complexity involved in filing taxes on cryptocurrencies? Cointelli offers a complete crypto-tax solution that eliminates practical problems and makes crypto-tax reporting as easy as possible while maintaining a very high level of accuracy. The Cointelli team has developed a software package for crypto tax that allows you to view your tax report and correct any errors in a simple and convenient way.
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“Crypto exchanges are increasingly reporting user transactions to the IRS, so there is a need for tax reporting on cryptocurrencies,” said Mark Kang, Cointelli’s CEO. However, current solutions are often too expensive, inaccurate and incompatible with a large number of global exchanges. Cointelli eliminates frustration by offering reliable, user-friendly and affordable software to the average investor. ”
There are a number of important steps in reporting cryptocurrency taxes using the software, and these include extracting and importing transaction data from multiple exchanges and wallets. To ensure accuracy, Cointelli supports imports from a large number of exchanges, including Coinbase, Binance and Kucoin. Individuals and organizations need to consider whether their software allows multiple ways to import this data. If not, it becomes pointless to use software for efficiency. Cointelli offers a number of easy ways to import data from different platforms, making it very convenient for all users.
Parties should also exercise caution when calculating cross-platform transaction taxes. For example, Bitcoin can be called BTC on some platforms, but XBT on others. Most cryptocurrency tax software platforms ignore such details and rarely use transaction types when importing transaction data. This means that some data may go unnoticed, resulting in customers submitting tax returns without important information.
The requirements for tax reporting are becoming increasingly stringent around the world. Cointelli is developed by tax experts and allows traders to manage their crypto investments while submitting the correct tax returns. It is also offered as a premium service by the popular US digital money platform Uphold.