Step-by-Step Guide to Using Kingscrowd’s Tax Center

The Kingscrowd Tax Center is a valuable tool designed to help investors manage and track their equity crowdfunding portfolios, especially when preparing for tax season. By automatically calculating short- and long-term gains and allowing users to track exits and failures, the Tax Center makes it easy to stay on top of your investments. Here’s how to get the most out of this powerful feature.

Step 1: Accessing the Tax Center

  1. Login to Kingscrowd: Begin by logging into your Kingscrowd account.
  2. Go to ‘My Portfolio’: In the main menu, navigate to ‘My Portfolio.’ Make sure you have added your investments to your portfolio to enable tracking and reporting in the Tax Center.

Step 2: Open the Tax Center

  1. Select ‘Tax Center’ in the Sidebar: Once you’re in your portfolio, go to the left-hand side menu and click on ‘Tax Center’ to open the tool. The Tax Center will automatically check your portfolio investments against Kingscrowd’s database of exits and failures.
  2. Review Detected Exits and Failures: The Tax Center flags any companies in your portfolio that have had exits (successful sales, IPOs) or failures (closures, asset sales).

Step 3: Understand Exit and Failure Details

  1. Review Exit and Failure Outcomes: Each flagged company will show specific information on its outcome. For instance, if a company shut down, the Tax Center provides the shutdown date and a brief description.
  2. Track Realized Value and Gains: If an exit’s realized value has been entered, the Tax Center will calculate gains and display a short- or long-term gain summary. For example, if you record a $50 realized value, the tool will calculate and display the return based on your initial investment.
  3. Verify Information: Some companies may not have a recorded realized value. The Tax Center will display an exclamation mark, indicating that you need to enter this data to complete the calculations.

Step 4: View Detailed Company Descriptions

  1. Expand for More Details: Click on a company’s entry to view descriptions from the Kingscrowd Exit or Failure Tracker, including any available details on the nature of the exit or shutdown. For instance, if a company was sold through an asset sale, this information will appear here.
  2. Verify Source Links: Kingscrowd provides links to public sources (like press releases) for verified outcomes, when available, to help investors corroborate the information.

Step 5: Utilize Tax Center Features

  1. Filter by Year: If you have multiple company exits or failures, use the year filter to sort through entries by tax year.
  2. Search for Companies: The search feature allows you to find specific companies in your portfolio quickly.
  3. Download to CSV: Export your Tax Center data to a CSV file to keep detailed records offline or share with your tax advisor.

Step 6: Benefits for Investors

  1. Track Investments Over Time: Kingscrowd’s Tax Center helps investors stay informed on portfolio outcomes, especially as some companies may not proactively update investors.
  2. Plan for Tax Season: With Kingscrowd’s automated calculations for gains and losses, managing tax filings for crowdfunded investments becomes easier and more accurate