Crypto accounting firm Lukka has announced a “do-it-yourself” crypto tax preparation product tailored for retail investors.
The product also known as LukkaTax is evolved from LibraTax, a commercial crypto tax calculator Lukka released in 2014 when the company was first formed.
A Solution For Taxpayers
Lukka has been focused on providing institutional-grade solutions to crypto funds, fund administrators and enterprises. The company is now catering to retail investors who must specify to the IRS their transactions in virtual currencies.
Lukka CEO Jake Benson
“This year we are focused on the retail investor because for the first time in six years, the IRS has clarified for taxpayers how they want to treat 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?’”
Benson states that 2019 is the first year that the IRS will ask taxpayers to document their virtual currency activity, prioritizing this question to the top of its new IRS Form 1040 Schedule 1.
“Six years ago, taxpayers had to report gains and losses for any asset, but this has largely been avoided, as it was never explicitly stated. This year, the question is specifically mentioned first on a major tax form.”
Benson noted that there are two versions of the LukkaTax product for:
- Certified public accountants
Benson also said that there have been talks with major exchanges to partner with Lukka in the future.
“We already partner with major players like Kraken, Circle and ShapeShift and we are in discussions with others as well.”