Node40 Launches TurboTax-esque Bitcoin Software

Investing, News | March 24, 2017 By:

Blockchain infrastructure hosting service Node40 has launched ‘Node40 Balance’, a tax reporting software that will help US-based users report digital currency gains and losses to the Internal Revenue Service.

The software automatically calculates gains and losses from trades and syncs them to a 8949 tax report form which can be sent to the IRS. The Node40 Balance currently supports Dash, and anticipates adding bitcoin support soon.

The IRS targeted San Francisco-based Coinbase last year, asking for user information. The agency claims few taxpayers are reporting bitcoin gains and losses on their annual returns.

The software had a two-year development cycle, which included a beta program involving real-world testing by Dash traders, miners, accountants, lawyers and tax professionals, the New York-based Node40 claimed. The software is targeted toward individuals, small businesses and large corporations, as well as government departments.

“Node40 Balance is a feature-packed blockchain accounting service that brings the familiarity of services like QuickBooks or TurboTax to the world of digital currency,” said a statement from Node40 CEO Perry Woodin. “Node40 Balance analyzes the blockchain and provides valuation data for all of your transactions. You annotate your transactions according to your real-world needs and Node40 Balance provides reports with your gains, losses, and income.”

Woodin claimed a simple FIFO strategy (first-in, first-out) is not sufficient for dealing with digital currency transactions. “Node40 Balance uses the true carrying cost and days held to calculate precise valuations,” he said.

Node40 Balance is being offered by the company as a Software as a Service (SaaS) and requires a paid subscription to use it. Currently, subscriptions are available for one, three and twelve-month periods.