Breaking Stories

Intuit CEO Warns of Tax Bill Shock for Bitcoin, NFT Traders

(Bloomberg) — Intuit Inc. Chief Executive Officer Sasan Goodarzi warned that Americans who invested in speculative assets like Bitcoin or nonfungible tokens, and actively traded equities on commission-free websites could be dumbfounded at this year’s tax bill.

Most Read from Bloomberg

Meta Faces Historic Stock Rout After Facebook Growth Stalled

Spotify’s Problems Grow as More Artists Join Boycott

Facebook Owner Meta Set for $200 Billion Wipeout, Biggest in Market History

U.K. Scrambles Fighter Jets to Intercept Unidentified Aircraft

Tesla, Who? Biden Can’t Bring Himself to Say It — and Musk Has Noticed

“We’re gonna see a lot of that throughout tax season, where folks just didn’t understand what they did. And there’s a lot of millennials that really did a lot of trading without knowing what the implications are,” Goodarzi said in an interview. “They are shocked as to how much money they’ve lost or how much they owe because they were in essence gambling with their money.”

Regulators have signaled they are preparing to act aggressively to ensure those who purchased NFTs are taxed appropriately. However, there remains some confusion over how the sale or purchase of tokens will be evaluated by the Internal Revenue Service. For example, NFTs, which give buyers the rights to digital images, could face a tax rate as high as 37%.

But a murky tax code may also benefit Bitcoin investors, as it could allow them to claim deductions over losses that were then reinvested within a certain time frame. Meanwhile, some individuals who traded on platforms like Robinhood Markets Inc. over the past year — many that were likely first-time investors — remain confused over whether they actually need to file and could face large tax bills.

Intuit is prepared for that confusion among taxpayers. The Mountain View, California-based financial software provider has been hiring experts to help tax filers online, a service known as “TurboTax Live,” which Goodarzi said “is the fastest growing platform we’ve ever had in the company’s history.”

“What we are seeing is folks not understanding the implications of the income that they make,” he said. “We have over 50 million TurboTax customers. Anonymously, we can look at data patterns, provide insights. So that’s where the real sort of leverage comes in for us.”

Most Read from Bloomberg Businessweek

Nurses Who Faced Lawsuits for Quitting Are Fighting Back

First Black Woman Picked for Fed Draws GOP Fire Over Research

Google Is Searching for a Way to Win the Cloud

Rent Inflation Shows That Landlords Have the Upper Hand Again

Spotify’s Bet on The Joe Rogan Experience Exposes Rift in Audio Strategy

©2022 Bloomberg L.P.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *