- Gemini exchange is set to automate crypto tax reporting for its customers with TaxBit partnership.
- Investors can be able to track and optimize their trades that can incur high tax implications using the tool.
Crypto tax reporting is becoming an issue for many investors, as most people do not know how to accurately calculate and file their tax reports. However, many global cryptocurrency exchanges and other related companies have been working to make the processes easier for investors. The latest company on this path is the Gemini exchange, which recently announced a partnership with TaxBit.
Gemini exchange to provide tax reporting tools
According to the information, the New York-based digital currency exchange and custody company, Gemini entered a partnership with TaxBit, the crypto-focused tax software company, on October 29. The alliance is geared at streamlining the whole processes of crypto tax reporting for the vast traders and investors on Gemini exchange. Thus, the Gemini will be adding digital currency tax reporting tools to its suites of services.
The reported tool will be powered by TaxBit’s Tax Center Suite solution, which will automatically make the required calculations for users’ tax reports. The traders on Gemini exchange will be able to monitor the tax implications of whatever digital currency trade they execute on the cryptocurrency exchange. Ultimately, these investors will become less burdened with tax calculation as the whole processes are automated.
Additionally, the exchange noted in the information that the tax reports from the automated tool come in the same format standardized by the United States Internal Revenue Service (IRS). TaxBit added that crypto traders and investors on Gemini exchange could be able to reduce their tax liability from the tax tool. The tool can equally enable them to raise their chances of getting a tax refund.
The issue of cryptocurrency tax reporting is presently considered a serious matter, unlike before when investors weren’t aware that their incomes from crypto activities are taxable. The IRS hasn’t also relented in reminding investors of the need for reporting their crypto deals for taxation.