Turbo tax is trying to make tax payments for cryptocurrency easier this year.
The electronic tax preparer is touting Token Tax, its software add-on to hep crypto traders and investors easily account for tax burden of all their trades.
“Token Tax is the only crypto tax platform that connects to every major trading exchange. No matter where your data is from, we’ll calculate your taxes with it.” Turbo tax says on its Token Tax website.
Furthermore, Token Tax boasts that it is supported by every major token exchange.
“We accept data from every major cryptocurrency trading exchange on the market. Easily import all your historical transactions while also adding new ones automatically via API as you trade.” It also says on the site.
API, or application programming interface, and it is “ a program that enables one software application to interact with another. In simple terms, an API is a messenger that takes requests and tells a system what you want it to do — and then returns the system’s response back to you.” According to the site Brave New Coin.
Token tax even handles the tax consequences of margin trading, “We know that for some of you, merely trading crypto isn’t exciting enough. You need leverage as well. Don’t worry, we can handle that. TokenTax is the only cryptocurrency tax platform that correctly handles margin trades from Poloniex, Bitmex, Bitfinex, Kraken, and more, and it’s part of why we are the go-to tax software for cryptocurrency traders.”
Along with a new site to explain Token Tax, Turbo Tax also released a one-minute video on You Tube.
According to the video, a tax filer needs to
- create an account
- Complete a tax profile (by entering the filers name, address, etc.0
- Add the crypto data by using a CSP upload or “by connecting to your crypto-exchange”.
- Choose the preferred accounting method
- Download the tax forms
“You’re done,” the video notes.
Token tax is available globally, “Crypto is a global movement, and so are we. We’re based in the United States, but we’ve had customers from around the globe. We serve all countries and can convert your data and calculations into any currency. We’ve helped customers do their taxes in countries from Germany and Portugal to South Korea and Australia — and many more.”
In February 2018, Commodities Futures Trading Commission Chairman testified in front of the Senate and warned that though it is easier to dodge the taxes on crypto- profits, they are due and they are mandatory.
“I know that a lot of people in the crypto community may be watching this hearing,” Giancarlo said during the hearing. “So, this is a very good opportunity to remind them that taxes are due on crypto currency transactions that may be taxable. So, this is not an off-the-grid-from-a-tax-point-of-view environment.”