New Virtual Currency Tax Software

Sept. 5, 2014 - PRLog -- The Bitcoin Expense Tracker from software developer Sembro Development is the first software to facilitate the documentation of gains and losses from Bitcoin for taxing and personal purposes. After linking all virtual currency wallets to the Bitcoin Expense Tracker, the software automatically registers all transactions and calculates tax liability.

The IRS ruled that virtual currency is treated as property, making price fluctuations in Bitcoin subject to capital gains taxes, which can be cumbersome. For example, on August 31, 2014 the price of Bitcoin reached a low of $475.17 and a high of $502.54, marking a price swing of $27.37. With Bitcoin’s usership and volatility increasing, these fluctuations are likely to continue, if not exacerbate, and all of them will be taxed!

Now, all Bitcoin users must keep records of all Bitcoin purchases, sells, and transactions, including the time, date, and US dollar value to keep up with tax liability. The IRS reserves the right to impose penalties on any individuals or businesses that treated a virtual currency transaction differently than as stated by the IRS in Notice 2014-21. That means the IRS can back tax all Bitcoin transactions.

For the average Bitcoin trader and user, keeping records of all transactions is time consuming and difficult. Since the virtual currency’s inception in January 2009, thousands upon thousands of transactions have been made. All are now subject to taxing via the IRS.

Sembro Development created the Bitcoin Expense Tracker to save users and traders the time and energy required to research and record all of their Bitcoin transactions and their relative US dollar value.

The software makes this painstaking tax process easy by automatically recording all Bitcoin transactions, showing account values, total spending, tax liability, total unrealized assets, and a register of internal transfers and external buys and sells. The Bitcoin Expense Tracker can also export reports and label individual accounts. In addition, the application works in retrospect so all past transactions are recorded.

For more information, visit the company’s website: https://www.sembrodevelopment.com/for-traders/

Information on IRS taxing taken from Notice 2014-21, available here: http://www.irs.gov/pub/irs-drop/n-14-21.pdf

Bitcoin price information taken from http://www.coindesk.com/price/