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Rachel Welch

26 November 2022 137 Read Crypto

Why You Need a Cryptocurrency Tax Accountant?

Whether you are new to crypto trading or are just looking to take advantage of the tax benefits, you need to find a Cryptocurrency tax accountant who has experience with the crypto industry. Cryptocurrency tax accountants can advise you on how to maximize your tax deductions and minimize your tax liability. They can also help you navigate the challenges that come with filing your crypto taxes.

Cryptocurrency tax accountants are experienced in dealing with a variety of crypto-related tax issues, including mining, STOs, ICOs, and masternodes. They also have extensive experience dealing with HMRC investigations and resolving tax disputes.

Cryptocurrency tax accountants can also help you keep track of all your transactions. It is important to maintain accurate records of all transactions so that you know what you have and what you have not. If you have been trading at a high volume, you may need to keep a detailed record of your transactions. If you own multiple exchanges, you may need to file an FBAR. Keeping records of your transactions will help you calculate your gain or loss and determine which taxes you will owe. You will also need to keep track of the value of your cryptos.

Cryptocurrency tax accountants will use specialized software to determine your tax liabilities. For instance, CoinTracker is a tool that connects to your wallet, the blockchain, and the exchanges you have traded on. It also allows you to export your gain/loss report for tax purposes. It also integrates with Wolters Kluth CCH Axcess, a software application for reconciling virtual currency transactions.

Cryptocurrency tax accountants also provide strategic guidance. A good CPA should have an open mind, and should be willing to communicate uncertainties to their clients. Tax preparers can also use transaction reports to help determine which taxes apply and quantify the tax owed. If you have a complicated operation, a professional accountant is your best option.