Cryptocurrency

3 Things to Know for Cryptocurrency Taxes

Cryptocurrencies, such as Bitcoin and other internet-based currencies, are new to the world of finance. Although some CPAs might balk in dealing with clients who trade or mine these currencies, Edgewater CPA Group is ready for it. Laws regulating cryptocurrencies are new, and the market continues to change, but here are three things to keep in mind at tax time. 

 

1. Record assets gained or lost.

According to a 2019 survey by Blox, a cryptocurrency accounting platform, one of the biggest mistakes clients made in dealing in cryptocurrency was missing or inaccurate data. Tracking this data can be complex, and it’s very important to have a system in place that can manage the complicated nature of these currencies. 

2. Report assets gained or lost on your tax returns.

Although cryptocurrencies are new, the IRS has issued guidelines for reporting income and transactions for tax purposes. However, unlike practically every other finance-related aspect of running a business, guidelines for cryptocurrency accounting are still being worked out. What’s more, they continue to evolve. This can be complicating at tax time. 

3. Choose a CPA who knows cryptocurrency.

At Edgewater, we look at your specific cryptocurrency accounting needs. We work with all types of cryptocurrency and accept data from every digital currency trading exchange on the market. Our cryptocurrency tax preparation accountants pull the data and determine the income that should be reported as taxable. We’ll prepare accurate tax returns and ensure the lowest tax liability possible. What’s more, we’ll help you navigate the ever-changing IRS laws in order to keep you compliant.

Experienced Services for Cryptocurrency Tax Preparation

With the ever-developing world of Bitcoin and other digital currencies, it’s valuable to have a supportive financial team by your side. Call today at (888) 317-4835 to schedule your consultation with Edgewater CPA Group. We have offices in Indianapolis and Fort Wayne, IN, and serve clients across the US.

Source: Accounting Today

Edgewater CPA Group

Recent Posts

4 Freelance Financial Mistakes to Avoid

Starting a freelance career is both exciting and daunting. As you navigate this new world…

2 weeks ago

4 Reasons Why Closing Your Books Monthly Matters

As a small business owner, you juggle countless responsibilities daily. Between managing customer expectations, overseeing…

4 weeks ago

3 Tips for Sticking to Your Business Budget

As a business owner, managing your budget is crucial for your company's success. However, sticking…

1 month ago

Mastering 4 Budgeting Basics for Entrepreneurs

As an entrepreneur, managing your finances is crucial to the success of your business. One…

2 months ago

4 Signs You’re Ready to File Your S-Corp Tax Election

As a small business owner operating as an LLC, you may be considering whether or…

2 months ago

3 Ways Your Business Can Quickly Go Into Debt

As a small business owner, we know you always look for ways to grow and…

3 months ago