Cryptocurrency accounting firm Lukka announced a crypto tax product for retail investors. Known as LukkaTax, it originated from LibraTax, a commercial crypto tax calculator Lukka released in 2014 when the company was first created.
The Born2Invest mobile application is bringing the latest crypto, and business news from trusted sources to a single screen so you can stay on top of the market. The application is aggregating the most important and breaking news from relevant websites, the list is always revised and updated with new resources.
Retail investor-focused year
While Lukka was mainly focused on providing institutional solutions for crypto funds, fund administrators and enterprises, the company is now serving retail investors who must specify to the IRS their transactions in virtual currencies. Lukka CEO, Jake Benson, told Cointelegraph: “This year we are focusing on the retail investor because, for the first time in six years, the IRS has explained to taxpayers how they want to treat the cryptocurrency. There is a new question that appears first on the IRS Schedule 1 tax form that asks, “Do you have any transactions in virtual currencies for this year?”
According to Benson, 2019 will be the first tax year when the IRS will directly ask taxpayers to document their activities in virtual currency, setting the priority of this question to the top of its new IRS Form 1040 Schedule 1.
“Six years ago, taxpayers were supposed to report profits and losses on any asset, but this has largely been avoided, as it was never explicitly stated. This year, the question is specifically mentioned in the main tax form,” explained Benson.
Solution for taxpayers and CPAs
Recent statistics showed that 14.4% of Americans own cryptocurrency. This means that millions of Americans will be responsible for reporting on crypto in their tax forms this year.
At the same time, LukkaTax will be available on Jan. 15 to support the 2019 tax season, as well as previous tax years. Like other software solutions that are “do it yourself” (for example, TurboTax, but for cryptocurrency), Lukka charges $19.95 for an annual subscription and $9.95 for customers who make pre-purchases before January.
According to Benson, LukkaTax is a standalone product that uses the same infrastructure as Lukka’s leading institutional solutions. The tool works in three steps. Users first load their cryptocurrency transactions to the platform. These transactions are calculated and a report is created showing how much will investors have to pay in taxes.
While investors can use the product together with other traditional solutions such as TurboTax, Benson noted that there are two versions of LukkaTax—one for individuals and one for certified public accountants.
“According to CPA.com, 45% of Americans pay their own taxes and 55% go to tax practitioners for help. This is great for CPAs who don’t know the cryptocurrency industry at all,” said Benson.
Benson also noted that last Dec. 9, Lukka signed a partnership agreement with CPA.com, one of the largest accounting firms in America. This partnership is beneficial as LukkaTax will now be a preferred tool that CPA.com clients will utilize.
“CPA.com selects only a small number of software companies to collaborate with. This is an honor for us as it will give a huge number of CPAs across the country direct access to our tool. Forty-five thousand accounting firms will now have access to LukkaTax,” said Benson.
The company will continue to focus on institutions
While LukkaTax is a tool for retail investors, Benson specified that the company is still very much focused on institutions: “This is the first time we are doing anything with retail investors since this year is the year that recent tax compliance announcements have been made regarding cryptocurrencies. Although the partnership with CPA.com is greatly expanding our retail capabilities, we still have excellent partnerships with institutions. We are now expanding both in retail and institutional direction.”
Benson also said that there have been talks with major exchanges to partner with Lukka in the future. “We’re already working with major players such as Kraken, Circle and ShapeShift and we’re also negotiating with others.”
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CryptoHamster, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Genomcore Finalizes its Entry into the United Kingdom after Increasing its Turnover by 73% in 2021
Genomcore has recently entered the market in the United Kingdom. In 2020, the company had a turnover of $912,000 (€750,000),...
The Fintech Ecosystem in Colombia Exceeds 322 Companies
The digital credit segment is the leader in Fintech service offerings, followed by payments and corporate finance, according to Fintank...
Valsabbina Bank and Siav Purchase 25% of MyCreditService
Valsabbina Bank and Siav will purchase 25% of MyCreditService, as part of an investment agreement. The entry of the two...
Cybersecurity Rising Among America’s Infrastructure Priorities
The proposed budget allocates $110 million to the Cybersecurity and Infrastructure Security Agency. Another $750 million is targeted for additional...
Axes Enters the Fertility Business in Spain: the Group Buys Ovoclinic Barcelona
Axes Capital is an international family office focused on investments in the following sectors: healthcare, real estate and renewable energies....
Cannabis6 days ago
On the Way to Cannabis Legalization: Frankfurt Positions Itself as a Pioneer
Featured6 days ago
Ant Group Creates a New Fintech Company: Chongqing Ant
Featured5 days ago
Crowdfunding for the Creation of a Legal Defense Fund for Wind Power Projects Completed
Business6 days ago
Fed’s Tools are Broken