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Cryptocoin tax software company Libra has made its first product, LibraTax, publicly available to help cryptocurrency users calculate their tax obligations and get compliant with relevant regulations.
Bitcoin, LibraTax, IRS, software
The software will allow individuals and businesses to optimize their US tax filings, and it will accommodate cryptocurrency users from 2013 and before, including those who filed for tax extensions in the spring, the company said in a statement.
LibraTax retrieves a user’s transaction history from the blockchain and cross-references that data with a given currency’s historical market value.
Most taxable events — income, gifts, donates, etc. — can be accounted for, and gains or losses can be calculated by applying several cost-basis methods to optimize a taxpayer’s reporting.
The software pertains largely to US taxpayers, whom the IRS told in March to treat cryptocurrencies as property, and that gains and losses needed to be reported on state and federal returns. The company noted:
“Even those who have already filed will want to amend their tax returns once they discover that reportable capital gains may be significantly reduced with optimized accounting options.”
The company also noted it was introducing an affiliate program targeted at CPAs who are already experienced in accounting for cryptocurrencies. The program then links them to taxpayers — individuals or businesses — who need help filing cryptocurrency-related taxes.
“We’re excited that these easy-to-use, automated tools for consumers, tax professionals and accounting firms are finally available,” Libra founder and CEO Jake Benson said. “Our primary objective is to have approachable, convenient software that simplifies the end-user experience associated with taxpaying — ultimately saving users precious time and money.”
Libra’s tax software will work for Bitcoin, Ripple, Dogecoin and any other cryptocurrency a user might hold.
Libra itself is owned by CrossCoin Ventures, which invests in cryptocoin startups, particularly those that work within the Ripple ecosystem.
“I’d like to see a dozen companies launched over the next twelve months or so at a minimum,” CrossCoin partner Adam Mars told CoinDesk in March, speaking about CrossCoin’s Ripple-focused business incubator. “I’d like to see quite a few of those go onto the next stage of the market and get some adoption. The areas we’re looking at are pretty diverse.”
Here is a video of Libra’s Benson introducing his startup at CoinSummit earlier this year:
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