There’s one topic around the adoption of digital currencies that often seems to elude the conversation — tax implications.
Yes, we know what digital currency was originally created for, and yes, we are of the firm belief that people should have more control over their finances— Nano, after all, is designed to help you keep more of your money. However, whilst we’re all gearing up for the fast-approaching reality of digital currency going mainstream, with more financial freedom, there is and always will be, the ever-looming elephant in the room — tax obligations.
To help lessen the burden of finding the right platform for your reporting needs, we reached out to our friends over at accointing.com, experts in crypto tax for a quick overview of their suite of practical tools designed to aid the integration of Nano into your future tax reports.
For those who are new to the concept of crypto tax, please share some information with our readers on Accointing and what the platform aims to achieve.
Accointing is an all-in-one solution that allows you to track, manage, and report your transaction from one single platform, available on desktop, Android and iOS.
We are a group of, tax accountants /specialists software developers, marketers, business developers, social media managers, designers and career changers from a wide variety of fields who have a common goal — to make the Accointing experience a little better every day.
Crypto tax is somewhat of a niche service, what was your inspiration behind the creation of the Accointing platform?
We started Accointing out of our own need. We believe the crypto space needs a tax reporting tool that is user friendly and helps you organize all your crypto data so that you can spend more time on things you like doing.
Whether it is traditional money or cryptocurrency, no one wants to worry about tax, so we built a simple solution for this complex problem and combined tracking and portfolio insights with a tax solution.
What motivated you to open the Accointing platform to Nano users?
We opened up our platform to Nano users in 2019, as we felt that Nano is without a doubt one of the most promising digital currencies equipped to handle payments.
When it comes to reducing energy consumption Nano’s is capable of turning the entire crypto space on its head. We were also highly intrigued by Nano’s ability to overcome a number of the scaling issues that plague some of the more established networks like Bitcoin and Ethereum.
You’ve been in the digital currency space for a while now, what changes have you seen and why is the Accointing platform now more important than ever for Nano users?
The global economy is under enormous pressure following the pandemic. It is unclear how the economic damage will affect the established currencies, there is also the impending threat of hyperinflation across multiple countries which is inevitably pushing digital currencies into the limelight. Although many believe that cryptocurrency will and should remain untaxed, it has not stopped the following events from happing over the past year.
- IRS letters to 10,000 crypto taxpayers
- IRS summonses to Coinbase, Kraken and others
- Crypto tax question on IRS Form 1040
- Exchanges, custodians, and crypto payment services are slated to have to report to the IRS too
This is just in the US, however, the above events are a clear indication of what is yet to come. Also with various exchanges strengthening their KYC requirements, there are now more ways to track individual transactions.
The questions “Where does the money come from?” and “Can you show me your transaction history” will come up more and more often. This is possible with traditional money and a bank account, but how does that play out in the crypto world?
Proof of ownership certificates and an overview of one’s own transfer history is simply not possible without the introduction of software like Accointing.
Why should people use Accointing over other crypto tax platforms?
We built Accointing with a user-centric approach to help empower people with the right tools and high data precision so they can focus on making money investing and interacting with digital assets.
The platform offers a unique solution that makes it easy for anyone, no matter your experience, to create high-quality data insights in their own trading and transaction history. This is the foundation that allows us to really deep dive into portfolio analytics, country-specific tax reporting and proof of ownership.
We also have an easy import for Nano wallets in Accointing so that they can automatically sync their historical transactions.
Through Accointing you can:
- Have your complete asset history in one place
- Export a tax report to file your taxes alone or with your personal accountant
- Build an overview of your asset allocation (multi depot solution)
- Find the right accountant for your jurisdiction
- Import more than 300 wallets and exchanges