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Missouri-based software maker CryptoTrader.Tax has launched a new product facilitating cryptocurrency tax reporting.

As the 2019 tax year comes to an end, the software is designed to help firms, certified public accountants and professionals counsel their clients about reporting their taxes from crypto in accordance with the tax guidelines set out by the United States Internal Revenue Service (IRS). CryptoTrader.Tax announced the news in a press release on Nov. 25.

The new tool allows to auto-generate client’s tax reports

The newly released crypto tax professional suite by CryptoTrader.Tax provides step-by-step process description for importing crypto transactions by clients, as specified on the website. The tool allows tax professionals to auto-generate client tax reports using transaction data imported into CryptoTrader.Tax, manage multiple clients and operate automated importing.

Since the IRS released its guidelines for crypto-based tax reporting in October, roughly 150 million American taxpayers will have to answer the question on Form 1040 whether they received, sold, sent or exchanged any virtual currency.

In the report, CryptoTrader.Tax stated that the IRS expects that roughly 12 million tax returns should contain some form of crypto investment.

CryptoTrader.Tax CEO: there’s an increased demand for automating crypto tax reporting

David Kemmerer, CEO and co-founder CryptoTrader.Tax, stated that the new question on 1040 means that all tax professionals not only have to ask their clients whether they had any crypto-related activities this year but also must be ready to handle crypto taxation for clients. Kemmerer noted that their crypto tax professional suite follows increased demand from tax professionals:

“We’re seeing that thousands of tax professionals are now looking for software tools to help them automate crypto tax reporting for their clients. We are excited to launch our crypto tax professional suite to provide a much needed solution for these professionals.”

According to the report, CryptoTrader.Tax already has thousands of users on its platform to date and has processed over $10 billion of crypto transactions over the past two years. The new software is free-to-use for tax professionals, the report notes.

0.04% of tax filers reported capital gains from crypto in 2018

On Oct. 9, 2019, the IRS issued its guidelines for crypto-based tax reporting. According to the new rules, U.S. persons are subject to U.S. tax in case if they hold, sell or exchange digital currency as well as if they receive digital currency in the form of salary or as a result of a hard fork. If U.S. people acquire digital currency as a gift, there is reportedly no immediate tax. The IRS has reportedly not decided whether promotional airdrops should be treated as taxable to date.

According to a study by Credit Karma Tax, data released ahead of the close of the preceding tax year indicated that just 0.04% of tax filers were reporting capital gains from crypto investments to the IRS. Meanwhile, the number of Americans who own crypto reportedly almost doubled in 2019, from 7.95% in 2018 to 14.4%, according to a new survey published in October.

Cointelegraph By Helen Partz , 2019-11-26 03:43:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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