Save On Your Crypto Tax Bill By Filing An Extension
We spent thousands of hours pouring over tax law while considering machine learning algorithms that could make sense of the thousands of transactions that flow between wallets and exchanges. From this research, we were able to start to construct a model to stitch together your transactions so you can label them accurately if they are payments, investments, or otherwise.
We were able to show huge savings on capital gains running the same sets of data through our platform other tools to compare. We then gave our improved software to CPAs that represent “crypto-whales” to either pay their taxes now or extend till they can use this platform for all of their taxes. We’ve been in this process since January 2018. We know our platform is the best.
When we ran these sets of data, we saw a $10,000 difference between our platform and Coinbase’s tax tool.
We’re almost ready to reveal our platform to the public.
However, we first wanted to alert you to the possibility of asking for a tax extension so that you can have adequate time to figure out your real payment:
- Make sure to file your extension by the original taxes due date. For most people, this is April 15.
- Get out Form 4868 and fill it out online or fill a paper copy.
- Use Zenledger to estimate your capital gains and sign and date a check.
- File your taxes online on the IRS website or mail in your forms and payment.
- Wait for confirmation to ensure your filing period has been extended.
At this time, a tax extension is a good idea so that you can estimate your tax burden before filing versus paying more than you might actually owe outright on capital gains. We all know we used cryptocurrency for payments as well as an investment.
Make an estimation with our platform first so that you can be seen making a payment proactively to the IRS, then use the platform with your CPA to figure out your real taxes owed and pay in 6 months. Then buy more crypto or invest more in your startups.
In the future, using blockchain will make tax payment automatic, on micro-transactions, and every month rather than a fearful hassle it has become. ZenLedger is creating this kind of software.