Flexa’s customers have been using cryptocurrencies for real-world payments with large retailers across the US this tax season
Atlanta, United States – 27 February 2020 – The deadline for filing 2019 taxes in the United States is quickly approaching and today, payments network Flexa, who is building a platform for users to pay for a large variety of consumer goods using cryptocurrencies — including Bitcoin, Bitcoin Cash, Ether, Litecoin, and Zcash — is directing its customers towards BearTax’s smart-matching algorithm that will automatically prepare their gains and losses this tax season.
Flexa’s network has enabled thousands of consumers to spend their U.S. dollars on the blockchain without the price volatility associated with traditional cryptocurrencies, across an array of large U.S. consumer retailers.
However, given that the Internal Revenue Service classifies Bitcoin and other cryptocurrencies as property, each time a Flexa customer uses crypto to pay for consumer goods, this means calculating capital gains tax for every purchase.
One of the biggest challenges for crypto holders in the US is to calculate the cost basis of their cryptocurrencies and properly classify transactions.
But thanks to BearTax’s smart-matching algorithm, it is now possible for cost-basis classification to be automated. This offers a solution to the crypto tax conundrum, that encompasses transactions as small as buying a cup of coffee.
“By using the latest AI and machine learning technologies, we’ve been teaching our smart matching algorithm to correctly identify which events are taxable, thereby reducing the time it takes for cryptocurrency users to complete their taxes and also reduce possible liabilities caused by human error,” said Vamshi Vangapally, founder of BearTax.
“We’re delighted to be bringing our sophisticated and automatic software to Flexa’s customers this tax season,” he added.
BearTax operates one of the industry’s most advanced continuous learning AI crypto taxation models, which is training itself to autonomously identify transfers, calculate block times based on timestamps on the blockchain, understand the fee dynamics of exchanges and optimize transfers based on a number of multiple parameters.
Flexa customers will be able to simply upload the CSV report of their cryptocurrency transaction history, regardless of the amount or purpose of each transaction, and the BearTax platform will be able to detect such events and calculate capital gains or losses appropriately.
Additionally, as BearTax connects with other exchanges and wallets, the transfers executed between wallets/exchanges and Flexa enabled apps can also be tracked and collated to present the complete cost basis of the assets spent.
BearTax; the cryptocurrency tax software for traders and accountants launched in 2018. BearTax Integrates with all major exchanges, fetching trades from everywhere, identifies transfers across exchanges, auto-generates tax documents and calculates tax liability in minutes. For more information, please visit: https://bear.tax/