Cryptocurrency Accounting Services

Tax Preparation and Accounting Services for Digital and Virtual Currency Transactions

The rise of cryptocurrencies such as Bitcoin, Ethereum, Binance Coin, and Dogecoin presents many challenges for businesses. Among them are finding a CPA or tax preparation and accounting firm that is knowledgeable – and experienced – in taxation issues, and laws and regulations are constantly evolving.

The reality, of course, is that most people do procrastinate and never get around to estate planning until it is too late. There are many reasons why this happens. Perhaps you are under the impression that it is too expensive. Maybe you just don’t want to think about death because it’s unpleasant or feel that because you are young and healthy, there’s plenty of time to worry about the future later.

Unfortunately, you could be wrong, and your family could be in for a surprise. Because if there’s no estate plan in place, then state laws dictate how your assets and property are divvied up — not you or your family.

Taxation of Digital and Virtual Currency

Cryptocurrency is a form of digital or virtual payment or currency that can be exchanged online for goods and services. These exchanges use a secure computer technology platform called blockchain to validate and record transactions digitally on a digital ledger.

Because the IRS defines virtual currency as a digital representation of value, it is treated as property for tax purposes. Therefore, whether you experience a gain or loss, it must be reported on Schedule D of IRS Form 1040. Long-term gains (assets held more than 12 months) are subject to capital gains tax rates, whereas short-term gains of less than 12 months are taxed as ordinary income.

Comprehensive Cryptocurrency Tax and Accounting Services

A tax and accounting professional like me has the knowledge and expertise you need to ensure compliance with a complicated set of rules. Whether you are a small business owner who accepts digital and virtual currency as payment for goods and services or an individual investor, I can help.

Here’s what I do for you:

Prepare cryptocurrency tax returns
Amend prior-year tax returns to reflect digital currency transactions

Ensure compliance with local, state, and federal tax regulations
Ensure compliance with international regulations, if applicable, such as FBAR (FinCEN Form 114) and IRS Form 8938
Provide accounting and reporting services for companies that use digital currency
Assist in the valuation of digital currencies
Cryptocurrency advisory and consultation

A Cryptocurrency Firm You Can Count On

The rules surrounding the reporting and taxation of cryptocurrency are complex, but I am here to help you every step of the way. If you have any questions or would like additional information about cryptocurrency tax and accounting services, please give me a call or contact me using the form below.