Cryptocurrency Tax Solutions

What is cryptocurrency (or coin)?

Cryptocurrency is digital or virtual currency designed to work as a medium of exchange. It uses cryptography (block chain) to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency. For tax purposes, cryptocurrency is treated as property as must be reported on Schedule D of the 1040.

What coin transactions are taxable?

  • Converting coin to USD
  • Buying coin with coin
  • Purchases made with coin
  • Accepting coin as payment for goods or services
  • Mining rewards

What coin transactions are not taxable?

  • Buying coin with USD
  • Transferring USD out of an exchange
  • Transferring coin between exchanges
  • Transferring coin from exchange to wallet
  • Hard forks (cryptocurrency splits)

How can we help you stay in compliance?

  • Bookkeeping for cryptocurrency transactions
  • Tracking and converting coin to USD 
  • Federal and state tax returns
  • Amending tax returns to properly report crypto transactions