Need a RELIABLE Tax Person Familiar With Crypto

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  • Bigfoot21075

    Ultimate Member
    Nov 3, 2008
    1,404
    Elkridge, MD
    Hi Everyone,

    For the first time in forever, my taxes will not just be a simple Turbo Tax and done deal. I have been trading in CryptoCurrecies this year and fully realize this is not a tax problem I want to deal with. I am hoping to find someone who does taxes and knows Crypto regs. I appreciate any suggestions!

    Rob
     

    fabsroman

    Ultimate Member
    Mar 14, 2009
    35,852
    Winfield/Taylorsville in Carroll
    If you are trading in crypto, it shouldn't really be all that hard. It is the same as trading in stocks. Granted, nowadays investment companies like JPMorgan, E*Trade, etc. have to report basis to you and the IRS on "covered" stocks and mutual funds, but that is not the case with crypto as far as I know. So, you have to track basis to determine how much of a gain or loss you have when you sell crypto. Essentially, it is like trading stocks in the good old days when your broker did not track basis for you.

    Now, if you were mining crypto, then that is a completely different thing and way more in depth. Kind of like running a business that is mining for gold.

    Get started with tracking basis immediately, because it is really hard to figure it all out several years down the road when you are selling it.
     

    FrankOceanXray

    Ultimate Member
    Oct 29, 2008
    12,028
    This is good to know.

    I am just dabbling. All in maybe for a grand. Just buying. Not selling. Just crypto and some mushroom stocks.

    This needs to be reported?

    You looking to take new clients Fabs?
     

    Bigfoot21075

    Ultimate Member
    Nov 3, 2008
    1,404
    Elkridge, MD
    This is good to know.

    I am just dabbling. All in maybe for a grand. Just buying. Not selling. Just crypto and some mushroom stocks.

    This needs to be reported?

    You looking to take new clients Fabs?

    THANKS FOR THE TIPS!

    It is my understanding that a purchase of crypto with fiat currency does not need to be reported, but if you use fiat to but a crypto then trade it for another, THAT does need to be reported. Of course just selling crypto needs to be reported as well.
     

    fabsroman

    Ultimate Member
    Mar 14, 2009
    35,852
    Winfield/Taylorsville in Carroll
    THANKS FOR THE TIPS!

    It is my understanding that a purchase of crypto with fiat currency does not need to be reported, but if you use fiat to but a crypto then trade it for another, THAT does need to be reported. Of course just selling crypto needs to be reported as well.

    Yeah, trading one type of crypto for a different type of crypto causes a taxable event. It would be as if you sold the first type of crypto for US dollars and then bought the other type of crypto for the same amount of US dollars.

    Here is a good website that explains the taxation of crypto currency.

    https://cryptotrader.tax/blog/the-traders-guide-to-cryptocurrency-taxes

    Again, I have to stress the tracking of basis for crypto. If you track basis for crypto in its value in US dollars, then life is easy at tax time. If you do not keep track of basis, then it is a nightmare. Believe somebody link a software/app for doing this above.

    I think explaining basis and capital gains to clients is one of the hardest things I do in my profession. That is followed closely by explaining the three buckets of income (i.e., ordinary, passive, and capital), which under certain circumstances losses in a category can be used to offset income/gains in another.

    I have clients that don't come to me until they sell their main home for a pile of money after having owned it 40+ years. Usually, it is after a spouse has passed and when the second of them is looking to sell and downsize. Explaining to them how they should have been tracking home improvements and adding it to the basis calculation for their home is tough. Explaining how they lost their spouse's capital gain exclusion because they did not sell within 2 tax years of the date of death of their spouse is tough. Explaining that they owe 20% on the capital gain on the sale of their house is tough.
     

    Money_B_85

    Member
    Mar 30, 2017
    52
    I use TaxBit.com wait until Feb and watch the crypto YouTube channels. They’ll give you a discount code because it is promoted heavily
     

    Johnny5k

    Ultimate Member
    Nov 24, 2020
    1,021
    I definitely need to meet with someone before years end. I think I can qualify for some hefty deductions, i think, and I may need to make some moves to maximize my advantage. Please drop me a PM if you can help.
     

    Ammo Jon

    Ultimate Member
    Mar 3, 2008
    20,781
    I definitely need to meet with someone before years end. I think I can qualify for some hefty deductions, i think, and I may need to make some moves to maximize my advantage. Please drop me a PM if you can help.

    Fabs is worth the drive, you can pay him in firewood
     

    fabsroman

    Ultimate Member
    Mar 14, 2009
    35,852
    Winfield/Taylorsville in Carroll
    I definitely need to meet with someone before years end. I think I can qualify for some hefty deductions, i think, and I may need to make some moves to maximize my advantage. Please drop me a PM if you can help.

    Don't wait until December 31st, because some things need time to be taken care of before the end of the year. For instance, buying equipment before year end for section 179 and setting up a 401(k). I am in the southern Carroll County area close to the intersection of route 27 and route 26. If that works for you, send me a PM and we can see if we can get together and get some tax planning done for you.
     

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