Cryptocurrency Tax and Accounting Specialist
New rules and notices from the IRS mean that your cryptocurrency holdings, revenues, disposals and transfers are now on page one of your tax return. Failure to report correctly now may lead to severe problems with the IRS later.
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* complimentary 30 minute consultation
If you have been trading in cryptocurrency, accepting it in your business, or if you have sold cryptocurrency, generating a capital gain in the past 12 months, you may be liable to new tax laws and regulations that may heavily impact your tax liabilities.
Cryptocurrency Tax Laws
Many accountants are struggling with understanding the crypto landscape. Though they may share IRS guidelines and regulations, they often fail to understand the finer nuances of how crypto is being used and may miss the opportunities to reduce your liabilities significantly.
Complexity Is A Problem
Notice 2014-21 means that cryptocurrency similar to property for federal tax purposes; however, many states still offer little or no guidance on digital assets’ taxation or have conflicting rules and regulations that only serve to confuse when it comes to what you must pay and when.
Why work with a specialist Cryptocurrency Taxation Expert?
Confusion relating to cryptocurrency is often further complicated for businesses working in multiple state jurisdictions or transferring crypto assets across state lines, further blurring their compliance liabilities.
As a specialist tax advisor working with cryptocurrencies for several years, we have enrolled agents able to practice in all U.S. states when it comes to defining your crypto liabilities.
Ideally positioned to bring clarity, compliance, advice and ultimately savings to you in managing your liabilities and adherence to federal and local state tax regulations.
Advanced Accounting and Tax Solutions provide expert help and advice on how you should be accounting for your Crypto holdings and reduce your liabilities on holdings.
IRS Rules for Cryptocurrencies
How gains and losses are recognized and reported often depends on the type of transactions conducted and the length of time you have been holding crypto assets.
Settling crypto for cash means that form 8949 must be submitted. In contrast, different rules and regulations relating to short and long-term capital gains are in place at a federal level or currently being defined at the state level.
The IRS applies FIFO (First-in, first-out) methods of accounting; however, depending on your business or personal circumstances, you may be able to use specific identification, which has the potential to reduce your gains on crypto transactions significantly.
International Rules for Cryptocurrency Tax and Accounting
For international businesses, the OECD/G20 Inclusive Framework on BEPS, Taxing Virtual Currencies is an excellent place to identify the policy gaps that may cause your business to fall out of compliance.
While Notice 2014-21 defines cryptocurrency as property, it stops short of describing it as a stock, meaning that a distributed ledger entry held by multiple parties or interests muddies the waters of “adequate identification” in crypto holdings.
Businesses trading internationally and working with crypto are at significant risk; for example, a U.S. company with offices in Scandinavia could be subject to 50% capital gains tax when disposing of crypto holdings, whilst those offices in Switzerland have no such taxes.
If you are holding various cryptocurrencies, what is clear is that tax collectors now have you firmly in their sights.
Finding a specialist tax and accounting expert
Hiring a specialist to help you file your crypto tax returns and, more importantly, to work with you in planning disposal, liquidation and tax planning for your crypto holdings will be critical to reducing your exposure and risk.
Yield farming, dollar-cost averaging and crypto tax software may help you reduce your liabilities. Still, individuals holding more than $100,000 worth of total crypto assets will undoubtedly face more taxable events.
Enthusiasts, professional traders, and business will reduce the risk of receiving any out of the blue taxation demand later by implementing practical and sage tax planning and structuring their holdings.
Working with Advanced Accounting and Tax Services
Unlike many traditional accountants, our team at Advanced Accounting and Tax Solutions has broad experience in crypto tax when trading or staking, liquidity mining, accounting for participation in multiple yield farming pools.
For more help on advice on planning, managing and preparing for taxation on your cryptocurrency assets, contact our team; we provide a complimentary first consultation that helps you reduce your liabilities gain tax efficiencies with savvy planning.
- Crypto Currency Trading
- Crypto mining
- Crypto in business
- Budgeting Analysis
- Crypto Tax Planning
- State crypto laws
- Adequate identification
- FIFO accounting for Crypto
- Multiple jurisdictions
- International trading
- Coins and token accounting
To help us best serve your inquiry, we recommend that you first describe the issue you’re having and telling me what you want to achieve. You may also email or call us to make an appointment.
Complimentary initial consultations are provided by Advanced Accounting and Tax Solutions to discuss the scope of your cryptocurrency project. We are based in Lansdale, Montgomery country, PA but work with clients from anywhere in the United States.
Our general response time is just one business day.
(267) 421 9602
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2293 Locust Dr, Lansdale, PA 19446.
At this time, we do not accept walk-in appointments.