Bitcoin, Crypto Investors, & Miners
Each time someone sells digital currency, the IRS considers it a taxable event similar to a stock sale. The resulting gain or loss is categorized as short or long term depending if held longer than 12 months.
Mined coins or coins received for services are generally recognized ordinary income measured at the fair value and could be subject to self-employment tax if an active trade or business, but in these cases mining related supplies and equipment are generally deductible.
As a virtual currency trader, miner, or long term holder, correctly reporting your taxes and tracking your basis can be overwhelming. Multiple exchanges and wallets without standard reporting requirements can create a lack of transparency. We understand, as crypto investors ourselves and Certified Public Accountants (CPA’s), we work with clients to navigate the various exchanges (Binance, Bittrex, Coinbase/GDAX, Gemini, etc), and other situations such as alt coins, airdrops, forks, and foreign reporting.
- Need someone to prepare your Form 1040 or business tax return?
- Are you capturing your losses to offset gains?
- Do you have estimated tax payments to make to avoid penalties & interest?
- Have you established or tracked your basis so you can substantiate your cost basis to reduce gains?
- If in a lower tax bracket can you sell long term gains at a 0% tax rate ?
- Have you prepared your required Form W-2, 1099’s?
We keep the process simple. Our CPA’s consult with our clients, Then we analyze the exchange and wallet transactions to find the most advantageous tax results and prepare your U.S. Tax Returns.