Gemini Will Calculate Taxes Automatically

American crypto exchange Gemini has partnered with tax firm TaxBit to help its clients calculate cryptocurrency taxes using the TaxBit Tax Center Suite solution. Tyler WINKLEVOSS, CEO of Gemini Exchange, said the TaxBit software will help address "the pain point of crypto tax" by allowing users to track real-time taxes on their crypto transactions on Gemini. This tool will also enable clients to increase their tax refunds.

Tax Center Suite by TaxBit is the first cryptocurrency tax tool Gemini has ever used. A crypto exchange representative said the company expects to integrate the TaxBit solution in the first half of 2021, as it awaits the tax authorities' final guidance on how cryptocurrencies should be reported. Once the software is fully deployed on Gemini, US exchange clients can download the tax report in the format required by the IRS.

In January 2020, Winklevoss Capital's family office took part in the $5 mln initial round of TaxBit funding. A Gemini representative noted that the company has been partnering with TaxBit since the reporting tax period of 2019. The TaxBit platform, launched in January 2019, supports over 2000 currencies.

Image courtesy of Taxbit