In Brief:
- The partnership will enable BlockFi’s clients to access TaxBit on the BlockFi platform through the new BlockFi Tax Center.
- The BlockFi Tax Center will track all information at the transaction level to provide clients with Form 1099-B.
Crypto lender, BlockFi, recently announced its partnership with TaxBit to enable its US clients tools for tax reporting requirements. The partnership will allow BlockFi’s clients to use TaxBit’s tax tools within BlockFi’s platform through the new BlockFi Tax Center.
BlockFi’s U.S. clients will have access to a “full suite” of tax tools within the BlockFi Tax Center. This includes tax reporting, tax planning, tax-loss harvesting, and trading. The service will also track information at the transaction level. This would be to provide clients with a 1099-B tax form which is necessary to properly submit tax filings.
BlockFi will offer an absolute process to fill in any transaction information occurring outside BlockFi’s platform. This will help furnish a completed tax form that is ready to file. The BlockFi Tax Center will give clients tools to monitor their tax liability as they use BlockFi throughout the year.
Benifits of the New Tool
The BlockFi Tax Center will give clients tools to monitor their tax liability as they use BlockFi throughout the year. Clients will be able to opt-in to allowing BlockFi to automatically execute transactions. This can result in an amount of tax losses specified by the user. This can also enable efficient tax-loss harvesting.
In the BlockFi Tax Center, clients will find useful summary data about total losses available to be harvested. They would also find total losses already harvested for the current fiscal year. They’ll also find similar data by asset, including whether an asset has a tax-loss harvesting opportunity or missing cost basis and the market position of each tax lot.
Also Read: TaxBit managed to raise $130M in its Series B Funding
“We’re always looking for ways to make it easier for clients to improve their financial planning, and we know that tax exposure can be a daunting task for crypto investors,” said Zac Prince, Founder and CEO of BlockFi. “That’s why we’re thrilled to be the first integration with TaxBit, harnessing their expertise to untangle the complexities of the tax system for our client base.”
TaxBit CEO Austin Woodward commented, “We are excited to partner with BlockFi and launch the BlockFi Tax Center. BlockFi is the first crypto native platform to provide its users with real-time gain and loss data, powerful tax-loss harvesting and optimization tools, and year-end tax forms that are ready for users to file. This partnership removes the complexities of digital asset tax reporting in a user-centric way.”
