Crypto portfolio manager and Bitcoin tax software CoinTrack has announced a partnership with crypto exchange Coinbase that will allow Coinbase users to easily manage their cryptocurrency taxes. The platform will help crypto holders on Coinbase to prepare their tax reports on crypto trades and sales.
The announcement also noted that Coinbase has made a strategic investment in CoinTracker. As a result of the partnership, filing 2020 crypto taxes will be less complicated than it was before for Coinbase users.
Unsurprisingly, the partnership is coming three months before the deadline given by the U.S. tax authorities for citizens to declare their crypto losses and gains to the U.S. Internal Revenue Service.
CoinTracker will help users record their crypto transactions
CoinTracker says it wants to be the leader in the crypto tax compliance space. It also wants to consolidate on the $3 billion in crypto assets it has tracked, as well as the 125,000 customers who believe in the company’s mission.
As the IRS is about to set a new law that mandates every crypto trader to present their transaction gains and losses, tax professionals and cryptocurrency users may need the help of crypto tax software to easily calculated their transactions. CoinTracker is hoping to solve this problem for Coinbase users from the exchange’s Taxes & Reports page.
The CoinTracker product will be available for all Coinbase users with a taxable crypto event and wants to calculate and file their taxes. Presently, without an appropriate crypto tax calculating software, it will be more difficult for most users to calculate their crypto taxes via cryptocurrency exchanges.
But with the CoinTracker software, users can send their transactions to CoinTracker from Coinbase and Coinbase Pro and calculate their crypto taxes easily.
IRS clamps down on crypto users
The software is useful for calculating and filling out specific tax-related forms, such as 8949 and Schedule D, for the declaration of assets, losses, and capital gains on income tax returns.
It can further be utilized by accountants and individuals or as a part of tax-filing software such as TurboTax.
Chandan Lodha CoinTracker co-founder commented on the integration, saying it will ensure a “one-click integration,” as it will allow users to calculate crypto gains and losses on the platform.
In November last year, a report revealed that the IRS will clamp down on Coinbase users who do not comply with the crypto tax requirements. When the crypto tax law goes into effect in three months, it will become a tax fraud if any user fails to provide details on their tax returns to tax authorities.