Global professional services firm EY (Ernst & Young) has developed a tax calculator as part of its blockchain analyser product suite that automatically calculates capital gains from cryptocurrency transactions.
The new software as a service (SaaS) application simplifies the process of US tax filings for those who hold cryptocurrency assets and need to report so on their US tax returns.
Expanding on the capabilities of the EY CryptoPrep tool released in summer 2020, this new tax calculator imports transactions from numerous major cryptocurrency coins and exchanges. It also automatically calculates a user’s capital gains and losses, simplifying the process of calculating tax returns and generating a draft Form 8949 on sales and dispositions of capital assets for individuals to review and file.
“The tax calculator addresses evolving needs as the crypto landscape continues to build momentum, making the effective management of crypto taxes essential. Individuals can use the calculator to streamline and automate their crypto tax processes in one centralized location,” said Michael Meisler, the leader of EY’s Cryptocurrency Tax Centre of Excellence.
“Looking ahead in 2021, EY teams will continue to explore expanding the tax calculator beyond the US – providing individuals with a centralised management technology to simplify the challenges associated with crypto tax,” added EY global blockchain leader, Paul Brody.
The development of this new tool marks the next step in a continued effort by EY to develop software that simplifies blockchain engagement for individuals and firms alike.