We have qualified and professional subject matter expertise when it comes to tax considerations related to cryptocurrency. . .
The DeMinno CPA Firm represents clients that have acquired crypto long-term, actively trade, as well as Mine as a Business (MaaB). We’re here to help guide you through the taxes of the most exciting technology in a generation.*
Cryptocurrency Tax Accountant?
One of the most common misconceptions about cryptocurrencies is that, because they are not issued by a central government, there is no need to report or pay taxes on profits from trading or mining them. While this is indeed the case in some countries around the world, taxpayers in the United States are not so lucky.
In the United States all profits made from the purchase and sales of digital currencies such as Bitcoin and Ethereum are subject to capital gains taxes. This is because they are treated as property (much like stocks, real estate, or gold). However, it’s important to keep in mind that all the rules that apply to these other assets do not apply to cryptocurrencies.
The laws around how crypto taxes work are fairly new and will continue to evolve alongside this groundbreaking technology. This makes it all the more important to consult an expert if you’ve experienced profits (or losses) via any cryptocurrency related activities.
Cryptocurrency tax rules?
While every individual’s experience is different and subject to the tax laws of their specific jurisdiction, the high-level cryptocurrency tax rules you should be aware of are that:
These bullet points are a brief summary, but there are other detailed rules and regulations around crypto taxes that any serious trader or miner should be aware of. If you took part in anything other than simply buying crypto to hold in a wallet, you should highly consider discussing your potential tax liabilities with a knowledgeable professional. While the laws will continue to develop, one thing is clear: the IRS expects you to make a good faith effort in reporting cryptocurrency activities.
With the spread of quick access to investing in crypto within the U.S. via Coinbase and popular Coinbase alternatives, the need for expertise in crypto taxes continues to spread. The technology is exciting, but many people are failing to grasp the reporting requirements. A clear understanding of your personal tax responsibilities is vital to participating in this growing economy. Contact The DeMinno CPA Firm today to ensure that you are properly reporting all cryptocurrency related activities!
*While we are not in position to opine about these types of investments or whether or not someone should consider investing in cryptocurrencies, we can provide helpful tax-specific guidance in the event that you need it.