Coinbase, which happens to be a cryptocurrency startup has today moved ahead to unveil a new gain/loss calculating tool. A person familiar with the matter has termed the move as a strategy geared towards helping its user base keep up with U.S. tax requirements.
It was last Tuesday when a blog was published and it pointed out to the fact that the firm had proceeded to offer a profound explanation about the calculator. It outlined that it could be used to generate a report which could illustrate their capital gains or losses and of course it would be employing an accounting method called first-in-first-out (FIFO).
It is important to point out that the new tool will be coming along with several caveats. Those customers that will have made purchases and sales exclusively at Coinbase will have an upper hand. Those that have bought digital assets somewhere else are advised to avoid taking this path.
He delved deeper into the matter to state that the tool moved quite a long way delivering a preliminary gain/loss calculation to help the large number of customers but on the same note it is crucial to outline that it shouldn’t be used as the official tax documentation without getting to validate the results with one’s tax professional.
It is worth noting that the previous year was one of the best year for cryptocurrencies with Bitcoin showcasing remarkable performance. It was a year that drew the thoughts of investor from around the globe to the field of cryptocurrencies to make investments. At the moment much is happening in terms of creating public awareness since investors from the third world countries are being encouraged to venture in the space.
It was way back in 2014 that the U.S. Internal Revenue Service made the announcement regarding its decision to classify some of the assets as taxable form of property. It goes without saying that over the years the issue of cryptocurrencies and taxation has remained to be a rather contentious topic but there is hope that might change with time according to several market observers.