As an investor in cryptocurrency, we have extensive knowledge of the various types of cryptocurrency, and what each one is designed to do, and as an accounting professional we keep up on the tax implications of Bitcoin and Cryptocurrency accounting. However, even with the gain in popularity with-in the last year, the idea of ‘Bitcoin’ is foreign to most, including the IRS! They have committed resources to learn, regulate, and gain an understanding of what ‘Cryptocurrency’ should be classified as, capital asset with capital gains, like stocks, or assets and taxed at individual rates. All they know is with potential for large gains, comes their chance to get big tax dollars, so it’s critical to accurately report earnings!
At Arizona Tax Advisors, we can help you navigate these waters. From basic guidance to helping to determine gains, we are here to help!