Cryptocurrency Tax and Accounting Specialist

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.