Cryptocurrency Taxes

Crypto has been called the future of money. It has created significant returns for some and tempts more and more people to get into cryptocurrency. However, crypto taxes are often overlooked. Almost every coin transaction – mining, spending, or trading – can be a tax event for US tax purposes.

Although cryptocurrencies are a digital currency, the US treats crypto as assets for tax purposes. Therefore, selling or even spending Bitcoin and other coins can have capital gain implications.

To make matters more complicated for cryptocurrency taxes, digital exchanges are not regulated. That means they do not issue a 1099 form, nor do they calculate gains or cost basis for you. Detailed record-keeping is therefore a must.

Typical questions we often answer:

  • Do I have to declare my crypto transactions?
  • How do I report my gains from crypto trading?
  • What is the cost basis of my coins?
  • Are air drops taxable?
  • Can raise capital tax-free with an ICO?
  • Can I offset crypto gains with losses?
  • What forms and records do I need?
  • Do I have to use FIFO or can I specify the coins sold or exchanged?
  • Are like-kind exchanges between different coins allowed?
  • Do coins held abroad trigger FBAR?

Not all tax accountants have experience with crypto taxation. We have helped numerous expat and nomad clients in the crypto space, including high volume traders and miners.  If you are an expat or nomad and need help with crypto taxes, schedule a consultation with one of our experts.

(Consultations are free for expats. We offer a paid crypto consultation for tax filers who live in the US. Contact us for more info.)

During the consultation we assess your tax situation and will provide you with a quote. Our transparent pricing means you won’t have any surprises.

Our experienced CPAs prepare your US tax return, so you don’t have to wonder how US tax laws apply to non-residents trading cryptocurrencies.