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