In a big move that makes it easier for cryptocurrency traders and investors with regards to taxes – Coinbase, one of the largest companies in the cryptocurrency space, has teamed up with Turbotax. This partnerships will allow customers to directly upload their transactions for tax payments to be easily calculated.
Many believe that cryptocurrency won’t truly “go mainstream” until there’s a regulatory framework around, so that investors and traders truly know how taxes are calculated and how cryptocurrencies are classified. This certainly marks a big step towards making it easier for anyone interested in investing in the space, whether short-term or long-term.
For those that are unaware, Intuit is a business and financial software giant that reached a market capitalization of $50 billion last year, in 2018. One of the services offered by the company is Turbotax, for consumer tax needs, although the company is also famous for offering products such as Quickbooks, an accounting program, and Quicken. The company was famously offered a buyout from Microsoft, but the Justice Department intervened.
Turbotax is one of the most recognizable names in the space, and the company has recently been focusing on live interaction with CPAs to make taxes easier for its users.
Coinbase seems to be quite serious about making cryptocurrency taxes easier for its millions of users, as it has launched a Tax Resource Center to provide more information and context to users. Coinbase also plans on publishing a guide to help users obtain more information, although it notes that legally it cannot give actual tax advice.
Coinbase is not only teaming up with Turbotax. Apparently, former Google employees have come up with an app by the name of Cointracker that supports thousands of cryptocurrencies, and is a bitcoin tax software manager backed by none other than the world-famous Y Combinator. Coinbase will also work to integrate Cointracker into its platform, as well.