- Partnership With Taxbit to Bring Industry-Leading Tax Reporting and Efficient Tax-Loss Harvesting to Blockfi Platform
BlockFi, a financial services company dedicated to building a bridge between cryptocurrencies and traditional financial and wealth management products, announced a partnership with TaxBit, the leading tax and accounting software provider for the digital economy. The partnership will enable BlockFi’s clients to access TaxBit’s expertise on the BlockFi platform through the new BlockFi Tax Center.
Beginning today, BlockFi clients will have access to a full suite of tax tools natively within BlockFi’s platform, including tax reporting, tax planning, tax-loss harvesting and trading optimized to take advantage of tax-planning opportunities. The BlockFi Tax Center will be available to all eligible clients in the United States.
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In 2019, the IRS began to issue audits to cryptocurrency holders with increasing frequency, creating a need for better tax reporting for crypto investors. Utilizing features from the TaxBit platform, the BlockFi Tax Center will track all information at the transaction level to provide clients with Form 1099-B, which is necessary to properly submit tax filings. BlockFi will also offer a seamless process to fill in any transaction information occurring outside BlockFi’s platform in order to furnish a completed tax form that is ready to file.
Additionally, the BlockFi Tax Center will give clients tools to monitor their tax liability as they use BlockFi throughout the year. In the future, clients will be able to opt-in to allowing BlockFi to automatically execute transactions, which can result in an amount of tax losses specified by the user and can enable efficient tax-loss harvesting.
In the BlockFiTax Center, clients will find useful summary data about total losses available to be harvested and total losses already harvested for the current fiscal year. They’ll also find similar data by asset, including whether an asset has a tax-loss harvesting opportunity or missing cost basis and the market position of each tax lot.
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“We’re always looking for ways to make it easier for clients to improve their financial planning, and we know that tax exposure can be a daunting task for crypto investors,” said Zac Prince, Founder and CEO of BlockFi. “That’s why we’re thrilled to be the first integration with TaxBit, harnessing their expertise to untangle the complexities of the tax system for our client base.”
TaxBit CEO Austin Woodward commented, “We are excited to partner with BlockFi and launch the BlockFi’s Tax Center. BlockFi is the first crypto native platform to provide its users with real-time gain and loss data, powerful tax-loss harvesting and optimization tools, and year-end tax forms that are ready for users to file. This partnership removes the complexities of digital asset tax reporting in a user-centric way.”
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