'TurboTax' for Crypto: Accounting Firm Lukka Debuts Tax Tool for Retail Investors

Lukka, one of the first accounting firms for digital assets, is offering a TurboTax-like service to retail crypto investors starting on Jan. 15. 

The move, announced Wednesday, comes after the U.S. Internal Revenue Service (IRS) issued updated guidance for calculating taxes on cryptocurrencies in October. The last time the IRS issued such guidance was in 2014, when the crypto market was less complex and fewer taxpayers held the assets. 

“One of the first questions on the IRS’s tax form is whether you have crypto assets,” Lukka CEO Jake Benson told CoinDesk. “It is a question that taxpayers cannot ignore anymore.”

Retail investors can submit transaction records from crypto exchanges to online accounts on the firm’s website. The software will reconcile the transaction data and calculate how much in taxes the investors will pay, which will be recognized by the IRS, according to Benson.  

Lukka has also established a partnership with CPA.com, a subsidiary of the American Institute of Certified Public Accountants, to offer crypto tax preparation services for professional accounting firms, Benson said. 

He said the partnership is significant since the institute only selects one partner in each industry to provide accounting guidance and services. 

Formed in 2014, Lukka – formerly known as Libra – is one of the first accounting firms to calculate taxes for crypto investors. The firm primarily focuses on serving institutional investors.

The new DIY service for crypto tax preparation will cost $19.95 for an annual subscription and $9.95 if customers pre-purchase before January.