CoinLedger, a technology platform specializing in cryptocurrency tax reporting software, has announced a partnership with MetaMask, a self-custody wallet provider for Web3. This collaboration aims to enhance interoperability and functionality for MetaMask users. Users who link their accounts can easily load their transaction history into CoinLedger’s tax reporting software with just one click. This eliminates the inconvenience of gathering and combining tax reports from different accounts and wallets.
David Kemmerer, the co-founder and CEO of CoinLedger, stated that this partnership offers seamless integration with MetaMask’s Portfolio offering. He emphasized that by simplifying the process of calculating and reporting taxes, they are making the cryptocurrency ecosystem more accessible to everyone.
The timing of this partnership is crucial for digital asset owners and traders within the MetaMask/CoinLedger ecosystem as the tax reporting deadline of April 15 approaches for most US taxpayers. Individuals who have engaged in activities such as buying, receiving, selling, or gifting cryptocurrency and other digital assets are navigating the evolving financial landscape.
Expert opinions on tax compliance for cryptocurrency enthusiasts range from acknowledging the need for adjustments to prevent excessive risk-taking by crypto firms and large investors, to considering it impossible to fully comply with the existing laws.
At the institutional level, the Biden administration is proposing a 30% excise tax on cryptocurrency mining. This tax would be applicable to any firm using computer resources for mining digital assets, regardless of equipment ownership or leasing arrangements. The tax rate would be phased in over three years, starting at 10% and gradually increasing to 30%. According to Pierre Rochard from Riot Platform, this tax would apply to mining firms regardless of whether they use electricity from the grid or renewable sources like solar and wind power.
In related news, CoinLedger reported that crypto investors made an average gain of $887 in 2023.