TokenTax imports ARK data for easy cryptocurrency trade tracking and tax filing.
We are proud to announce our partnership with ARK.io, a crypto wallet and platform for developer tools on blockchain projects. ARK also supports innovation though tools to easily deploy and work with blockchains. They also launched MarketSquare as a social platform for collaboration on blockchain projects. Through the TokenTax partnership, ARK wallet users can easily file and pay taxes on their crypto transactions.
History of ARK platforms
The ARK desktop and mobile wallets support multiple cryptocurrencies. The ARK explorer allows for scanning transactions, addresses and network activity. The ARK developer tools and Deployer are intended to help individuals and large enterprises adopt blockchain technology. The platform also offers Nodem for managing node data in a central platform. Their platform SDK also allows users to interface with multiple blockchains.
Taxes on crypto transactions
Purchasing cryptocurrency and holding it as an investment does not incur taxes, although you still need to disclose that you own crypto on Form 1040 by answering the IRS question:
“At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
When you dispose of your crypto through sale or trade, you do incur taxes. For example, you need to report and pay capital gains taxes if you traded one crypto for another, purchased goods or services in crypto, or sold your crypto for fiat currency.
If you were paid crypto to your ARK wallet in exchange for goods or services, you also incur taxes, although it needs to be reported as income at the time of receipt on a separate portion of your taxes. If you hold the crypto earned in your wallet and later exchange it for another crypto or sell it for fiat currency, you will incur capital gains taxes on these transactions.