The Leap into 2019: Welcome to the Crypto Tax World!
As we eagerly anticipate the tax season, a little something special has been delivered for cryptocurrency enthusiasts: Lukka, a prominent accounting firm, has rolled out LukkaTax, designed to help retail investors navigate the murky waters of crypto taxation. This introduction marks a significant evolution from its predecessor, LibraTax, aiming to arm taxpayers with the tools they need to satisfy the IRS’ newfound curiosity about digital currency transactions.
IRS Keeps Us Guessing: What’s New This Year?
If you thought taxes were complicated before, buckle up! For the first time ever, the IRS has placed a bold question front and center on their 1040 Schedule 1: “Do you have any transactions in virtual currencies for this year?” Luke’s CEO, Jake Benson, elaborated on this clarification, emphasizing that while past regulations left many unsure, this year’s question leaves little room for dodging the digital dollar. But no pressure, right?
LukkaTax: Your Trusty Sidekick in Tax Preparation
Available starting January 15, LukkaTax presents itself as the superhero of the DIY tax software world—like TurboTax but with a blockchain twist. At a steal for $19.95 a year (and $9.95 for the early birds), users load their crypto transactions, the software computes their tax obligations, and voilà! Instant tax documents ready for filing. It’s as easy as pie— if pie were made of spreadsheets and perpetual learning about crypto regulations.
Empowering the CPAs: Bridging the Knowledge Gap
Did you know that 55% of Americans still choose to consult a tax professional? For CPAs who may feel overwhelmed by crypto complexities, LukkaTax is eagerly stepping in. This clever tool is not just for individuals; there’s a special version for certified public accountants too! Thanks to recent alliances, LukkaTax is set to empower thousands of accounting firms by giving them access to a seamless crypto tax reporting process. Talk about sharing the love—and the tax burden!
A Foot in Both Camps: The Institutional Focus Remains Strong
While LukkaTax aims to capture the attention of retail investors, Benson assures us that their institutional-grade solutions are not going anywhere. The partnership with CPA.com is certainly a thrilling twist, as it opens doors to a fresh clientele while maintaining longstanding ties with large institutions. With ongoing discussions with major exchanges, it’s safe to say that Lukka is not just dipping its toes into retail waters—it’s fully diving in while remaining anchored in professional partnerships.
So, as the tax season creeps closer, remember: you’re not alone in your crypto tax confusion. With solutions like LukkaTax stepping in to make life easier, perhaps we can all find some joy in filing these forms. Or at least less confusion, right?
