Victor Ugochukwu · Dec 14, 2020 . 5min read
Gemini exchange partners with Taxbit for easy crypto tax reporting
Taxbit's Tax Center Suite technology helps crypto exchange users to automate and optimize the hassle of filing and paying cryptocurrency taxes.
By Victor Ugochukwu · Oct 31, 2020 . 5min read
The Winklevoss twins cryptocurrency platform Gemini exchange has partnered with Taxbit to help automate cryptocurrency tax filing and compliance for its exchange users.
In a recent announcement, Gemini shared that Taxbit’s Tax Center Suite to technology to automate and optimize the hassle of filing and making cryptocurrency tax payments.
The first set of customers to enjoy the feature will be US customers. These may need to file their cryptocurrency tax returns with the IRS. Once it has completed the integration into the Gemini platform, customers will be able to download a completed tax report and upload for use in a variety of popular tax filing software. They can as well opt to hand it over to an accountant in the same format that the IRS requires.
Specifically, Gemini customers can do two things with Taxbit’s Tax Center Suite. Firstly, it provides users with the necessary tools to file their returns seamlessly without so much of a hassle. The second is that it effectively affords exchange users the tools to monitor and lower their tax liability. In other words, customers can use the feature to increase their tax refund potentially.
IRS will acknowledge Gemini encouraging crypto tax filing through Taxbit integration
Crypto tax is an essential issue for the IRS and still a bit fuzzy in other jurisdictions. For instance, when a crypto asset owner holds bitcoins as capital assets, regulators tax them as property. Like stocks or bonds, any gain or loss from the sale or exchange of financial asset is taxed as a capital gain or capital loss.
Furthermore, big exchanges like Coinbase most times comply with the IRS if requested to furnish them tax details of customers. We saw that when Coinbase users complained of receiving emails from the IRS asking them to comply with tax regulations.
Innovations like Gemini – Taxbit partnership solution fosters a healthy relationship between crypto exchange users and regulators. If users explore it properly, there wouldn’t be any needs for loggerheads between them and regulators.
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