A lot of hue and cry was made when the IRS came up with its guidelines regarding taxing crypto-currency trading as many Bitcoin traders felt they were being targeted unnecessarily and it would be difficult for them to calculate complex taxation. However, now, Libra has announced that it is bringing LibraTax, a new software suite designed specifically for digital currency users.
The software suit is designed to solve the complicated calculation of taxation of the digital currencies and help Bitcoin traders figure out how much capital gains and income tax they owe. The press release from the California-based software developer said that the new software allows individuals and small businesses to comply with the latest IRS regulations.
Now, people making profits through Bitcoin can file returns reporting Bitcoin, XRP and other cryptocurrency transactions with the help of LibraTax. The company says that the solution is designed specifically to help Bitcoiners follow the recent IRS guidance on digital currencies requires that they report digital currency gains and losses on state and federal returns.
The automated solution will solve the major problem that Bitcoin taxation is going to face; for instance, it needs a lot of manual calculation; however, with LibraTax it won’t be time consuming and prohibitively difficult. The company says that the solution was developed to automate the accounting process by retrieving the user’s transaction history from the block chain.
Easing the Complexity involved in Bitcoin Taxation
Elaborating the modus operandi of the software the company says that once it collects the necessary data it synchronizes the value with the digital currency’s historical fair market value. The best part about the accounting software is that all types of taxable events are supported, including donations, gifts and income.
Thus, according to the company with the software that allows to dynamically compute gains or losses in a few seconds it can output a tremendously beneficial report to realize minimized or no reportable gains. The company believes that the software will accommodate all 2013 and earlier digital currency users as well as those who filed for extensions in spring 2014.
In a statement issued to media organizations LibraTax said that 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. Now, calculating losses and gains and calculate the exact tax has become easy with LibraTax says a company representative.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org