Filing taxes is already complicated enough, but filing cryptocurrency-related taxes is infinitely more difficult. Crypto users need to take into account every transaction they made within the current tax year, including the ones between exchanges and wallets, as well as their trading activity, profits, losses, and more.
Not only that, but they must also note down the exact price that the assets had at the time when the transactions were made. It is safe to say that calculating taxes is a difficult enough job that even the US IRS requires help doing it.
Due to the vast complications that all of this includes, there has been a growing demand for crypto tax filing apps, that could keep track of user activity and do the necessary calculations on their own.
The newest such app was just launched by Ernst & Young (EY), which can help US crypto users do their tax calculations with ease.
About the app
The app is called EY Cryptoprep, and it is a SaaS (Software-as-a-Service) crypto tax engine that offers a detailed step-by-step guide through the tax process.
The announcement of the launch was revealed on June 18th by EY, which is also one of the largest accounting firms in the world. The app itself is web-based, and it supports multiple major coins.
Other than that, the app is also tied to numerous exchanges, which makes it easier to collect and file the needed information.
once the data has been collected, the app will calculate the taxes and apply the tax authority’s rules to calculate gains and losses. Finally, once the calculations have been complete, it will issue a fully filled-out Form 8949.
Ernst & Young responding to crypto industry’s demand once more
While the app will certainly make crypto users’ tax calculations a lot easier, it is not the first crypto-related product offered by the company. It also released EY Blockchain — auditing software for digital coins. This product came out two years ago, in 2018.
Then, in 2019, it released EY Crypto-Asset Accounting and Tax, which is another tool for tax calculations and accounting of crypto transactions. This one was intended for retail and institutional investors alike.
Reprinted from invezz, the copyright all reserved by the original author. #cryptocurrency#
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