Service to Help Firms Meet Cryptocurrency Tax Reporting Obligations
Wolters Kluwer today announced the release of GainsKeeper Cryptocurrency, which extends trusted GainsKeeper functionality to keep brokers at the forefront of helping clients solve challenging aspects of tax compliance related to their cryptocurrency holdings.
Per IRS guidance, cryptocurrency transactions have tax consequences that can result in tax liability. Generally, virtual currencies are treated as property, not currency, for federal income tax purposes, requiring that cost basis be separately tracked to compute taxable gains and losses. Substantial fluctuations in value have resulted in dramatically increased interest and trading in cryptocurrency, which has created significant tax liabilities and risks for holders. The IRS issued a reminder in March that taxable cryptocurrency transactions must be reported on tax returns and taxes must be paid.
“Financial markets and investments constantly change, and bitcoin, a cryptocurrency, has been the recent focus of much attention,” said Stevie Conlon, Vice President, Tax and Regulatory Counsel, with Wolters Kluwer’s Investment Compliance business. “Regardless of what tomorrow holds, there are significant federal income tax issues regarding cryptocurrencies and their derivatives. Miners, merchants, holders, and investors need to be prepared, and Wolters Kluwer has demonstrated our product to customers and is excited to offer this module.”
GainsKeeper Cryptocurrency leverages GainsKeeper’s expertise as a best-of-breed automated tax reporting solution with a sophisticated tax lot accounting engine and seamless integration capabilities to provide a cost-basis solution for customer cryptocurrency holdings. The solution can be tailored to fit specific customer environments and is available as an additional module to GainsKeeper Brokerage or as a stand-alone solution. The product provides:
- Support for a wide variety of different types of cryptocurrency holdings: coins; equity and utility tokens; futures; pooled investments
- Tailored, leading tax functionality for each type, based on IRS guidance and acknowledged tax expertise adaptable to future guidance and broker preferences
- Support (including taxability) for different types of cryptocurrency forks, coin drops and exchanges, and other events, including specifically 2017 and 2018 forks relating to Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin Gold (BTG), Ethereum (ETH), and Ethereum Classic (ETC)
- Support for Bitcoin and other cryptocurrency-related futures offered on futures exchanges, such as the CME and CBOE
- Daily reporting of realized and unrealized gains and losses and transfers to support tax reporting and tax planning
Learn more about GainsKeeper Cryptocurrency, which is part of the GainsKeeper solution suite, an award-winning, tax lot accounting solution for the brokerage, fund investment, and active trader and individual investor communities. Recognized for its speed and tax accuracy, the GainsKeeper suite of products currently supports retail and wealth customers with more than 10 million accounts, and institutional customers accounts containing more than 20 million transactions.
About Wolters Kluwer Governance, Risk & Compliance
Wolters Kluwer Governance, Risk & Compliance (GRC) is a division of Wolters Kluwer which provides legal, finance, risk and compliance professionals and small business owners with a broad spectrum of solutions, services and expertise needed to help manage myriad governance, risk and compliance needs in dynamic markets and regulatory environments.
Wolters Kluwer N.V. (AEX: WKL) is a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. Wolters Kluwer reported 2017 annual revenues of €4.4 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide.