Here’s our update from the past couple of weeks as well as an insight into a really busy couple of weeks at Recap HQ. Tax season is fast approaching and in our mission to make crypto tax easier for everyone we’ve made a couple of changes to the app that makes finding out your UK tax position a lot more accessible and free (wahoo!) to all...
First up this week we've now launched our web app. In the past we've talked about how a downloadable app is the most secure option, but we found a way to bring Recap to the web without putting our users' financial privacy at risk. The same zero-knowledge end-to-end encryption is present in the web app. We’d even go as far as to say that Recap is now more secure than ever.But why the change? Quite simply, your feedback. It's must easier to get started now and you can access Recap from any laptop or desktop via Chrome or Brave.
Also based on user feedback, we’ve freshened up our tax page. Previously only users with a paid subscription had visibility of their tax position. Now, all UK users can discover their net gain/loss and find out if they need to file a tax return before subscribing. Once on a paid plan users have access to full detail and downloadable tax reports that are necessary to share with your accountant and for filing a Self Assessment tax return. We want this new feature to provide peace of mind to all those worried about crypto tax but not sure where to start.
Denmark has joined the list of countries asking crypto users for background of their historic transactions. Danish tax agency Skattestyrelsen (Skat) confirmed late 2018 that they had identified 2,700 individuals that owed taxes on Bitcoin gains and in August 2019 received authorisation to obtain crypto trading information from 20,000 individuals. They have asked for information about profit and loss for 2016-2018 according to FIFO as well as a full breakdown of transactions including individual rates for each. They have also asked for information on the purpose of acquiring digital currencies and documentation regarding the creation of a cryptocurrency wallet.
We will be building a FIFO tax engine in the coming months which will serve individuals in Denmark and other jurisdictions where tax calculations are simpler than the UK. If you’re from Denmark or any other country, you can still use Recap today as we’ve added multi-country support. Get your data in now ready for when we add this feature!
The IRS has released their latest draft schedule which asks US taxpayers if they’ve interacted with virtual currencies throughout 2019. This is clearly a precursor to requesting more information about crypto activity and gains.
If you’re a US taxpayer, do not lie about this as it would constitute tax evasion, and you could face fines of up to $250,000 and prison time. Recap will be launching US tax reporting early next year, so start getting your data into Recap so you can be ready to file next year.