Crypto Tax Services
As the number of cryptocurrency investors rapidly increases, demand for highly qualified and knowledgeable crypto tax professionals is exploding. The problem is that not all tax professionals have sufficient experience when it comes to crypto.
It’s more important than ever to partner with a crypto tax professional that you can trust. At Goldin Group, we help our clients navigate the increasingly complex tax codes associated with cryptocurrencies. Our depth of experience in crypto and expertise in capital gain reduction strategies for crypto make our firm the go-to solution for crypto investors.
Which Crypto Events are Taxable?
Not all crypto-related activities are taxable. Here is a brief overview of taxable and non-taxable cryptocurrency events.
Non-Taxable Cryptocurrency Events
- Using cash to buy cryptocurrency
- Transferring cryptocurrency between accounts that you own
- Gifting cryptocurrency below the gift tax maximum threshold amount
- Tax-deductible cryptocurrency donations to nonprofit organizations
Taxable Cryptocurrency Events
- Selling cryptocurrency
- Exchanging cryptocurrency (i.e., for fiat currencies or other cryptocurrencies)
- Rendering cryptocurrency as payment for goods and services
- Receiving airdropped tokens as a result of a hardfork
- Mining or staking cryptocurrency
- Receiving payment in the form of cryptocurrency
The gains and losses from taxable cryptocurrency events must be reported on IRS Form 1040 and IRS Form 8949 (Sales and Other Dispositions of Capital Assets).
How are Gains and Losses Calculated on Taxable Cryptocurrency Events?
Cryptocurrency is considered property and is therefore subject to capital gains tax laws. Here is an overview of how to calculate a capital gain or loss on a taxable cryptocurrency event.
Calculating Capital Gains and Losses on Taxable Cryptocurrency Events
- Calculate the cost basis by summing the amount of money you spent to purchase the cryptocurrency plus any related brokerage commissions and transaction fees.
- Determine fair market value, which was the value of the cryptocurrency at the time you disposed of the asset.
- Calculate the capital gain or loss by subtracting the cost basis from the fair market value of the disposed cryptocurrency.
Crypto Tax Services by Goldin Group
As the industry leader in custom cryptocurrency tax preparation, we provide our clients with one-on-one, personalized crypto tax services that are tailored to their unique investing styles, positions, and circumstances. Here is an overview of our core crypto tax services:
- Calculating the true cost basis can be complex if you’ve had a lot of trades and transactions over the last year. Not to worry! At Goldin Group, we do the heavy lifting of aggregating all your crypto transactions to determine your true cost basis.
- Identifying your total capital gain or loss. At Goldin Group, we are experts at advising our clients on strategies such as loss harvesting and staking to reduce capital gains from cryptocurrency activities. We’re laser-focused on making sure you don’t end up paying any unnecessary taxes.
- Ensuring your cryptocurrency transactions are properly reflected on your tax return and properly reported to the IRS. Many clients aren’t familiar with the process for reporting cryptocurrency activities to the IRS. At Goldin Group, we guide you every step of the way so you can rest easy knowing you’re in compliance with the IRS.
- Staying current with all new legislation to ensure you remain compliant year after year. Cryptocurrency tax codes are constantly evolving.
Professional Crypto Tax Consultation Available Now
We understand the excitement and uncertainty that comes with buying, selling, and holding crypto. That’s why we’re committed to keeping you compliant and minimizing the stress that comes with crypto tax management. If you have questions related to cryptocurrency taxes, reach out to the experts at Goldin Group CPAs today by contacting Ariel Goldin, CPA, Director of Client Relations at ariel@goldingroup.biz.
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