BitcoinTaxes and Bitcoin Tax Solutions Create Specialized Cryptocurrency Tax Service
BitcoinTaxes, a capital gains tax service for cryptocurrencies, and Tyson Cross at Bitcoin Tax Solutions, a California tax attorney and Bitcoin Foundation member, today announced a partnership to create the first specialized tax preparation service for users of Bitcoin and other cryptocurrencies.
The issue of taxation has been in the spotlight since the recent IRS Notice 2014-21 was issued March 25, which clarified treatment of virtual currencies, also known as cryptocurrencies, for the upcoming April 15 tax deadline.
However, Bitcoin users have found there is now an increased burden and difficulty in recordkeeping in order to report their taxes.
This new partnership will combine the existing BitcoinTaxes service with the expertise and knowledge of Bitcoin Tax Solutions around cryptocurrency tax law, for a new tax preparation service, which includes:
- Importing and monitoring income from cryptocurrency transactions
- Calculating short-term and long-term capital gains
- Form 8949 CSV, TXF and TaxACT® files
- Access to a leading cryptocurrency tax attorney for advice and tax planning
- Complete tax preparation service
Cross described the benefits,
“Many of our clients already use the BitcoinTaxes service, which does the calculations and significantly cuts down tax preparation time. But as experts in bitcoin and taxation law, we can also provide a preparation service that manages the unusual tax complexities of cryptocurrencies.”
Colin Mackie, the founder and creator of BitcoinTaxes, explained how the new features and this partnership will cover cryptocurrency taxation needs,
“The upcoming features that will automatically monitor purchases, as well as mining income, could create complicated tax situations. Now our users have access to one of the country’s leading bitcoin tax attorneys for tax advice and preparation.”
The new features aim to alleviate the burden of the recent IRS guidance by automatically tracking purchases through the blockchain and enhanced integration with online wallets, such as Coinbase, giving a seamless view on potential capital gains. Mackie added, “We already calculate capital gains from a user’s complete trade history, and now we can track purchases from addresses and automatically include them.”
Launched in February 2014, BitcoinTaxes is free for Bitcoin users in the 2013 tax year and provides premium services for alt-coins users as well as for previous tax years. The website has seen significant growth as the US tax deadline approaches. Bitcoin Tax Solutions, following publications of articles on bitcoin tax issues, has seen an equally large increase in the number of clients with cryptocurrency related tax questions.
About BitcoinTaxes
Denebrook Software, established in 2006 and based near Seattle, are the developers of BitcoinTaxes and other custom B2B and B2C software solutions. BitcoinTaxes provides capital gains calculations by importing trade data from many established crypto-currency exchanges, such as Coinbase, Bitstamp, BTC-e, Cryptsy, and MtGox. It supports users of crypto-currencies in different countries, including the United States, Canada and Australia and traditional currencies, USD, EUR, GBP, CAD, and AUD.
For more information about BitcoinTaxes, please visit https://bitcointaxes.info/
About Bitcoin Tax Solutions
Tyson Cross, tax attorney, is licensed to practice in California and a graduate of the Master of Laws in Taxation program at New York University School of Law. His practice includes assisting clients with tax issues related to Bitcoin and other crypto-currencies, including tax planning for investors, miners, and businesses as well as preparation of federal, state, and local income tax returns. Tyson is a member of the Bitcoin Foundation and has published numerous articles on the topic of bitcoin taxation.
For more information about Bitcoin Tax Solutions, please visit http://www.bitcointaxsolutions.com/
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