- Lukka recently announced a new tax preparation product designed for retail investors called LukkaTax.
- This product has come off the back of LibraTax, a crypto tax calculator.
- The company is now expanding its horizons and starting to look into retail investment.
Lukka, the crypto accounting firm, recently announced a new tax preparation product designed for retail investors called LukkaTax. This product has come off the back of LibraTax, a crypto tax calculator launched by the firm over four years ago when the company was just a startup.
Institutional-grade solutions for crypto funds have typically been Lukka’s forte, of which they have been focused on these past few years. The company is now expanding its horizons and starting to look into retail investment but must talk to the IRS in regards to their transactions in virtual currencies.
The CEO of Lukka, Jake Benson has said:
“This year we are focused on the retail investor because for the first time in six years, the IRS has clarified for taxpayers how they want to treat cryptocurrency. There is a new question that appears first on the IRS schedule 1 tax form that asks, ‘do you have any transactions in virtual currencies for this year?’”
This year is set to be the first year that the IRS will be sternly asking taxpayers to report on any of their activity on digital currency.
“Six years ago, taxpayers had to report gains and losses for any asset, but this has largely been avoided, as it was never explicitly stated. This year, the question is specifically mentioned first on a major tax form.”
Institutions aren’t getting the silent treatment though due to this move. Despite the LukkaTax tool being aimed at retail investors, the CEO did clarify that the firm is still very much focused on institutions:
“This is the first time we are doing anything with retail investors, since this is the year that recent tax compliance announcements have been made regarding cryptocurrencies. While the CPA.com partnership brings us heavily into the retail space, we still have some great partnerships with institutions. We are just now expanding into both the retail and institutional side.”
It will be interesting to see how this move plays out. For more news on this and other crypto updates, keep it with CryptoDaily!