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January 3, 2022

When is Crypto Data Available for Tax Filing?

Every year we embark on the arduous and often tedious journey of filing taxes, either your own, or perhaps if you're a tax professional, for your many clients. Historically taxes have had the tendency of being complicated but now that cryptocurrency and other virtual currencies have become so culturally prominent, filing taxes on this plethora of new data has become a requirement for many.

Tax season begins...

If you're like most people, January 1st begins your foray into considering you or your clients' tax burden for the filing year. There's a wealth of things you can get a head start on before W-2s, 1099s, and the like become available near the end of the month. Processing data like business and deductable personal expenses, setting up your tax software for all your basic filing information, and more.

But, what if we told you that there's another part of taxes you can prepare for, if not complete, starting at the beginning of January?

Because cryptocurrency data tends to be decentralized and outside the normal reporting procedures of traditional financial platforms, by utilizing the right crypto tax software, you can start compiling all of the necessary forms and documentation to file taxes on you or your clients' crypto transactions with your normal tax filing forms.

When can you get started on crypto taxes?

So, because of the decentralized nature of cryptocurrency and its non-standard financial attributes, crypto data is available to taxpayers and professionals starting on January 1st. This is a huge benefit for anyone looking to get a head start on their upcoming tax return.

But, does getting a head start mean sifting through thousands of decentralized transactions on the blockchain? Well, it could if you don't have the proper cryptocurrency tax and reporting software at your disposal. Ledgible Crypto Tax Pro is the professional solution for crypto taxes, preferred by tax pros and heavily utilized by direct filers alike. With a few simple integrations of different accounts, Ledgible Crypto Tax Pro can ingest all of your crypto data and develop the necessary tax reporting documents quite quickly. Thanks to Ledgible's partnership with major tax and accounting firms, the tool will automatically integrate with your tax software to easily assimilate your crypto tax documentation into your standard overall personal or business tax return.

Paying taxes, claiming losses, on cryptocurrency transactions doesn't have to be confusing and burdensome. If you're interested in getting started with Ledgible for free, you can do so here.

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