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Pay Bitcoin Taxes With LibraTax: The New Automatic Bitcoin Tax Filing Software

how to pay bitcoin taxes

Bitcoin taxes made easy! One of the biggest challenges for bitcoin investors since bitcoin comes out of no where can created a bunch of bitcoin millionaires is how to handle taxes from profits or less from bitcoin investments. Some cryptocurrency users have no idea how to deal with the headaches the IRS created when they announced that bitcoin will be taxed as income and loss not as a currency. When the time comes to file taxes, pulling those incoming and outgoing transactions from buying and selling bitcoin can be a huge task; especially for super active bitcoin investors. Well, no more bitcoin taxes headache. Libra, a popular software design company decided to throw bitcoin tax payers a bone by creating LibraTax.

LibraTax: Bitcoin Taxes Software

LibraTax wrote this on their site:

“Are you concerned about reporting your digital currency taxes accurately?
The IRS ruling is confusing. Essentially, you treat your digital currency as property. That means each and every transaction needs to be accounted for, and needs to be reported for capital gains purposes. What is the best way to do that? Manual calculations are tedious and time consuming. LibraTax makes it simple, but you may feel overwhelmed, or simply want the help of a qualified tax professional.”

“Are you a tax professional experienced in digital currency looking to add clients to your business?
Look no further. We have the most comprehensive and flexible digital currency tax calculation engine available. With LibraTax, you can select the best cost basis method for your customer, and in real-time, see the results of FIFO, LILO or our patent pending ‘optimized’ method. We are the first to tackle this industry necessity, and we nailed it!”

libratax bitcoin taxes example
Photo Credit: cryptocoinsnews

Looking at the quotes above, it’s is evident that LibraTax targets both bitcoin tax payers and tax professionals as well; killing two birds with one stone! Bitcoin taxes and bitcoin record management is now simplified with LibraTax! We reached out to Jake Benson,  CEO of LibraTax and he said this:

“The recent guidance given by the IRS in March to treat digital currency as property requires that taxpayers report digital currency gains and losses on state and federal returns,” Libra said. “Taxpayers and tax professionals alike have been uncomfortable and encumbered with this manual calculation because it is extremely time-consuming and prohibitively difficult.”

Is it heard to determine the cons of using LibraTax at this time because tax time is not yet upon us. However, the software has a few pros we can discuss currently. One of the biggest pros of LibraTax is that the software is fully automated! All you have to do is insert your bitcoin private key into the software and it will pull all your incoming and outgoing transactions. Similar to TurboTax, LibraTax allows you to file your bitcoin taxes electronically or print your bitcoin taxes on paper and mail to the IRS and your local tax office if you live in a state with state income tax.

LibraTax is also in the process of creating an enterprise version of LibraTax for small businesses and companies to help making their paying bitcoin taxes a headache tree experience. Mr. Benson made the announcement at the 2014 London CoinSummit and received a warm welcome by the summit attendees. Benson said this:

“We’re excited that these easy-to-use, automated tools for consumers, tax professionals and accounting firms are finally available. Our primary objective is to have approachable, convenient software that simplifies the end-user experience associated with taxpaying, ultimately saving users precious time and money. We’ve accomplished that without a doubt.”

Video Credit: CoinSummit

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2 comments on “Pay Bitcoin Taxes With LibraTax: The New Automatic Bitcoin Tax Filing Software”

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    1. Hey Kim,

      Yeah, I really dislike that aspect too. Still, if you want to use this program safely, you could treat it like a forkcoin. In other words, first transfer all your coins to a new wallet with a new private key. Then you can export the old wallet’s old private key into LibraTax without fear – the app can view all your old transactions but there’s no chance of it stealing your coins. Of course, any new transactions won’t be recorded by the app…

      Doing things that way shouldn’t be too burdensome if you file annually.

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