CoinLedger, a technology platform that specializes in software for cryptocurrency tax reporting, has announced a partnership with MetaMask, a self-custody wallet provider for Web3. The collaboration aims to enhance interoperability and functionality for MetaMask users. By connecting their accounts, users can now easily load their transaction history into CoinLedger’s tax reporting software with just one click. This eliminates the tedious task of gathering, transposing, and combining tax reports from multiple accounts and wallets.
David Kemmerer, the co-founder and CEO of CoinLedger, stated that this partnership integrates seamlessly with MetaMask’s Portfolio offering. Kemmerer further explained 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. With the tax reporting deadline of April 15 approaching for most US taxpayers, individuals who have dealt with cryptocurrency and other digital assets, such as nonfungible tokens or Ordinals, are navigating the evolving financial landscape.
Experts have differing opinions on how to address these tax requirements. Some acknowledge the need for corrections to prevent crypto firms and large investors from stretching the boundaries too far, while others argue that it is impossible for cryptocurrency enthusiasts to comply with the current laws.
At the institutional level, the Biden administration is considering implementing a 30% excise tax on cryptocurrency mining. The proposal aims to levy this tax on any company that uses computer resources for mining digital assets, regardless of ownership or lease. The tax would be phased in over three years, starting at 10% and increasing to 20% in the second year, before reaching the full 30% in the third year. According to Pierre Rochard of Riot Platform, this tax would apply to mining firms regardless of whether they use electricity from the grid or off-grid resources like solar and wind power.
In related news, CoinLedger reported that crypto investors gained an average of $887 in 2023.