Do you own Cryptocurrencies? Don’t let tax reporting ruin your weekends

As cryptocurrencies continue to gain traction and popularity, the IRS is catching up. Crypto-tax reporting is complex and can be be a painful exercise unless you use Coqonut.

Crypto-Tax rules are still relatively new and complex

Crypto-assets were popularized with s the invention of blockchain and further developments in distributed ledger technologies. . With the proliferation of different types of tokens in the market, the IRS started taking strong interest in the topic and defined the rules of the game. As a result, IRS published a short notice in 2014 in which it defined crypto-assets as a property that is, as an investment in real estate, bonds or stocks. Tax is therefore applicable from the moment investors placed their order.

Today, traders and crypto-assets holders have to file their taxes on their own, which has proven to be a daunting process This is where problems start. In order to calculate capital gains, users need to apply the FIFO (First In First Out) methodology, a process implying that the first assets bought must also be the first ones sold, which in turn requires unbundling each crypto-to-crypto trade into a ‘buy’ and a ‘sell’ transaction both expressed in USD, for which access to historical prices is needed. Additionally, other difficulties and complications are encountered, such as the treatment of payments made with crypto-assets as ‘sell’ transactions, or the consideration of the original asset acquisition date for asset transferred between two accounts owned by the same investor, or special treatment cases for airdrops, crypto-mining or selling of services or labor in exchange for crypto-assets.

There is a definite need for a clear and seamless tool to alleviate all these pain points, but crypto exchanges are not helping much.

Because exchanges and trading platforms have been focusing on core aspects such as security or scalability, none of them has invested in helping their users through the hassle of filing crypto taxes in the United States. Today, top exchanges and wallets are not even providing basic information needed for the purposes of filing taxes; they don’t offer capital gain calculations nor do they provide history of transactions. Very little help, if any at all, is provided for users to close the year from an accounting perspective

Here comes Coqonut — Easy, affordable & compliant solution!

Coqonut was built precisely to help crypto holders track & manage their crypto assets, and simplify the tax reporting exercise.

Simply put, the Coqonut platform allows crypto holders to easily import crypto-asset transactions from supported exchanges and blockchains, and automatically calculates capital gains based on the method of their choice for the fiscal year of their choice.

It is live, safe, reliable, easy to use and aggressively priced compared to other existing solutions. Try it now and make your tax-filing hassle free! Go to http://www.coqonut.com