Technology
Ledgible Rolls Out SpecID Feature for Digital Asset Tax Reporting
Using the specific identification feature, Ledgible users can optimize tax calculations tailored to their specific needs, the company said.
Jun. 03, 2024
Ledgible has made available new functionality for specific identification tax calculations, the crypto tax and accounting platform said on May 29.
Ledgible’s specific identification support enables users to identify and mark digital assets of noted sales to calculate tax based on the designated tax lots. Using specific identification, Ledgible users can optimize tax calculations tailored to their specific needs, the company said.
“We are thrilled to introduce SpecID support to our platform, further enhancing our users’ ability to optimize their digital asset transactions,” Ledgible CEO Kell Canty said in a statement. “With the rapidly evolving landscape of digital assets, it’s more important than ever to have access to robust and sophisticated tools. Ledgible remains committed to providing innovative solutions that empower our users to navigate the complexities of digital assets while maximizing their tax situation, including loss harvesting and other unique scenarios.”
Ledgible has provided public commentary of the new draft IRS form 1099-DA, which crypto brokers—defined by the IRS as “digital asset trading platforms, digital asset payment processors, and certain digital asset hosted wallets”—will begin using next year, once it’s finalized, to report digital asset transactions.
The proposed IRS regulations provide rules for specifically identifying digital assets for determining basis and the holding period when a taxpayer sells, disposes of, or transfers less than all units of the same digital asset, according to accounting firm Grant Thornton.
Ledgible’s SpecID support is now generally available for production use, the company said. For more information, visit Ledgible.io.