Cryptocurrency and Bitcoin Tax Problems
At Adam Shay CPA, PLLC we are a strategic partner, priding ourselves on being more than a boring once-a-year accountant or tax preparation firm. We have joined our crypto accounting services with tax preparation, ensuring you get the most well-rounded service available.
Cryptocurrency is a digital currency transferred between peers and confirmed in a public ledger through a process called mining. These digital currencies only exist electronically and to date don’t have a central issuing authority or regulatory body. Cryptocurrencies are exchanged internationally on a global ledger called the blockchain. This ledger holds the history of every crypto transaction ever made.
Cryptocurrency got its start with Bitcoin in 2009, and today it is estimated that there are over 1,000 cryptocurrencies being traded around the globe. Ethereum, Ripple, Litecoin, Cardano, Stellar, ZCash are some examples of popular coins today.
Calculating your capital gains or losses for your cryptocurrencies isn’t always straightforward. We have extensive knowledge of the tax complications that exist with Bitcoin and cryptocurrency. Whether you simply transact or are a miner, investor, or day trader, we have the expertise to assist you with your unique situation. We are ready to help you in all of your crypto tax, compliance, and strategic planning needs.
Did you know that the IRS issued a policy notice in 2014 outlining that virtual currencies are taxable as property? Many investors incorrectly believe that digital currencies fall under loopholes or exemptions to the tax code and this is far from the truth. The IRS is ramping up enforcement against cryptocurrency investors, and even going after investors retroactively as far back as 2013. Bring your questions to our experienced CPAs today to ensure you are compliant and getting the best tax planning and advice. If you have a cryptocurrency related tax problem, we can help!