Adam is the Co-Founder of Blox.There is an abundance of new and existing crypto tokens, coins crypto wallets, service providers and decentralized financial instruments powered by blockchain.
Because crypto can be bought, stores and transacted in so many different networks and blockchains, tracking across portfolios, wallets and crypto exchanges requires meticulous organization and monitoring.
The arrival of increased government regulation in the U.S for crypto tax and accounting emphasizes the importance of tracking.
New guidance from the IRS helps crypto accountants to identify taxable versus non-taxable crypto transactions, while also addressing the accepted formulas for cost basis, known as First In, First Out, and Last In, First Out.For crypto businesses, investors or anyone that owns cryptocurrencies, they will be required to provide a complete history of their crypto transactions.
A 2019 letter to crypto holders by the IRS has made it clear that they have new expectations for crypto tax.
Crypto tracking solutions already exist, but only a few can complete the job.
In the near future, these tracking apps will become far more sophisticated, handling everything from crypto bookkeeping to crypto tax and cost basis.
On top of having a complete transaction history and the need to calculate manually, most crypto tracking is hindered by poor organization methods.
Crypto tracking is difficult and complex but can improve productivity and efficiencies for businesses and investors.
For crypto tracking, one of the primary difficulties is the wasted time, energy and resources spent on tracking businesses or individuals assets, especially for accounting and tax professionals.
The top 6 reasons to start tracking your crypto
Published on Jan 13, 2020
by Cryptoslate | Published on Coinage
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