Lolli, a loyalty rewards program, entices customers to buy by providing Bitcoin as an incentive. Among the first businesses to enter the loyalty market was Lolli.
The app receives a portion of each sale made when you purchase online at one of Lolli’s affiliate websites. Consider it a commission that is in charge of driving customers and sales to each retailer.
Lolli then distributes a percentage of this commission to its clients. The payment for this component is made in Bitcoin and is transferred right to the wallet you created in the Lolli app. Finally, for more protection, you may move this cash to a hardware wallet.
Lolli Exchange Reporting
The acceptance of bitcoin payments has spread to several nations. The Internal Revenue Service in the US had also determined cryptocurrencies to be property rather than money. Through the Notice 2014-21, this was accomplished in 2014.
Based on how long they are held before being sold and the taxpayer’s tax rate, cryptocurrency gains and earnings are taxed. Bitcoin gained from mining or staking will be taxed at the current going rate and treated as regular income.
Will Lolli Exchange Provide me with Tax Documents?
Given the nature of cryptocurrency, it is challenging for any exchange to provide its members with an in-depth tax report. Many traders utilize a variety of crypto exchanges and wallets. Lolli Exchange, on the other hand, can only see transactions that take place on the Lolli platform.
The cost basis for purchasing the tokens will not be taken into account by Lolli Exchange if an investor buys Bitcoin on Coinbase and then transfers it to Lolli. The network won’t be able to offer a detailed account of financial gains and losses in this situation.
Luckily, there is another option for investors to appropriately submit their taxes. ZenLedger easily calculates your Lolli taxes and also finds opportunities for you to save money and trade smarter. Let’s find out how to do your Lolli taxes with the help of ZenLedger.
Connecting Your Lolli Exchange To ZenLedger For Your Crypto Tax Documents
As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 400+ exchanges.
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you’ll see a table that outlines the possible methods. For many centralized exchanges, we support a direct API code import, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the [Exchanges] tab of the [Imports] page. Select the exchange that you are looking to import, (Lolli Exchange, in this case) and instructions will be provided for that specific exchange!
The Bottom Line
The amounts refunded are rather large when it comes to online buying, especially when compared to other cashback websites. Additionally, you can realize respectable earnings if you include the referral scheme in the mix.
The method has a lot of benefits, but you can get upset by some of the drawbacks.
On this platform, Lolli still has work to do. It is not as well-established as many of the established cashback players.
This may be the app for you if you are aware of the issues beforehand and feel comfortable waiting for one to three months to obtain incentives. Just be prepared to email the firm when mistakes and delays occur.
ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Get started for free now or learn more about our tax professional prepared plans!