Meet LibraTax, the first Bitcoin-friendly tax calculation tool especially created for all cryptocurrency traders and related companies. Or at least for the ones that intend to report their Bitcoin activity to the official authorities.
Unlike other similar tools designed to work with fiat currency, LibraTax is a cloud-based service that scans the Bitcoin blockchain to determine how much you gained or lost when purchasing or selling BTC.
According to PCWorld, the tool turns the necessary accounting operations into an automatic process based on the user’s transaction history. It then generates a report after scanning the blockchain and attaches that same document to the schedule D form.
The great thing about LibraTax – once again, for the users who actually intend to report their Bitcoin-related profits or losses – is its ability to track all taxable events (income, gifts, donations, etc) without having to perform manual searches. And the users can still remain anonymous by uploading a spreadsheet of their transactions with no public address or identifiable details, or use a throwaway email address.
But the company behind LibraTax has other plans: they also intend to integrate the app with services like Intuit’s TurboTax and QuickBooks.
Using LibraTax will be free until the tool’s official launching, which will happen in mid-September. Besides the plans available on a subscription basis for tax professionals and accounting firms, the company that developed the tool is also planning a premium version that should cost between $10 and $19.