6 Crypto Questions to Ask Your Tax Accountant

The last 3 years have seen a tremendous rise in cryptocurrency mining and ‘hodling,’ causing an increase in the demand for accountants who understand this field. Since the IRS doesn’t offer much guidance related to tax in cryptocurrencies, expert accountants must explain the tax laws related to the crypto field.

Crypto Questions You Should Ask Your Tax Accountant

Even if you don’t have significant crypto dealings, your tax consultant can answer questions relating to specific tax obligations. If you already have a tax professional that you consult with, here are a few questions that you might want to ask them if you have bought or sold crypto in the last 6 months:

Have They Worked With Crypto Clients Before, And How Do They Go About Their Process?

Knowing if they have worked with crypto clients before means, they have a certain amount of experience and know what to expect when dealing with your crypto investments in the upcoming year.

What Is the Difference between Taxable and Non-Taxable Crypto Events? Where Do My Transactions Fall

Since cryptocurrencies are taxed similarly to gold and stocks, each crypto event may create a capital gain or loss. The dates, sale value, cost basis, and fees associated with any transaction must be on the record. Looking at this record, a tax specialist can advise you on which events would be taxed and which would not.

What Is The Tax Applicable To My Cryptocurrency Holdings?

As with stocks, crypto’s tax values are calculated according to any profit and loss they incur over a given period. Since this can get complex and confusing, consult with a tax accountant specializing in crypto to help prepare you for your upcoming taxes.

How to Get Accurate Crypto Transaction Records?

To calculate tax on your crypto holdings, you need accurate records of your entire transaction history. This includes any time you have received, sold, or exchanged your virtual currency. A tax expert can guide you on how to obtain these records.

If I Haven’t Reported My Crypto Investments In My Tax Returns In The Past Few Years, What Can I Do About It Now?

Due to stricter measures of the IRS, it would be impossible to continue to avoid filing tax returns on your crypto holdings. Have your tax accountant help you file tax returns on your current crypto holdings.

Do I Have To Pay Income Tax Due To My Crypto Transactions?

If you have accepted virtual currency as payment in your business, you will be required to file income tax returns. This applies to any virtual currency gifts you have received or earned Bitcoins.

End Note

If you are unsure about the taxes involved with cryptocurrency or just interested in investing, look no more. Hodlbum is the answer. Being a cryptocurrency access company, it will assist you in all things related to cryptocurrencies, so contact them today.