Topmenu

Crypto Tax Services

Crypto Tax Services

 

The world of finance and investing is constantly evolving. While more traditional investments such as stocks and bonds are still popular, more people are putting their money into digital assets, including cryptocurrency. At Cook Martin Poulson, we provide accounting services to help cryptocurrency investors manage their money.

We’ll put our knowledge of blockchain and cryptocurrency (crypto) reporting to work for you, ensuring that you meet your tax obligations and that you don’t overpay on your taxes. Whether you’re a new crypto investor or you got in on the ground floor with Bitcoin, you can count on us to help you track and properly report your digital asset transactions.

Crypto Tax Services Utah

Do I Need to Report Cryptocurrency on My Taxes?

In general, the IRS considers cryptocurrency (or “Virtual Currency” in their terminology) to be property and not currency. That means you must report your capital gains and losses to the IRS and pay taxes accordingly.

Reporting rules depend on whether you bought cryptocurrency or earned it through mining. We can help you understand how and when to report crypto transactions to the IRS, including which tax forms to use and when to file them.

What Crypto Activity is Taxable and Not Taxable?

Most crypto activity is taxable, but the form of taxation varies depending on how you obtained your cryptocurrency and how long you have owned it. Our tax professionals understand the fine points of virtual currency transactions and how they must be reported to the IRS according to the tax code.

  • Capital Gains and Losses. Once you own digital assets, your gains and losses must be reported to the IRS on Schedule D and, if necessary, Form 8949. As noted above, the IRS considers crypto holdings to be property, which means that they are capital assets and subject to capital gains tax in some circumstances
    • If you have owned cryptocurrency for less than one year before selling or spending it, the gains are considered short-term capital gains and taxed at your ordinary-income tax rate.
    • If you have owned cryptocurrency for more than one year, any gains are considered long-term capital gains and taxed at the long-term capital gains rate.

     

  • Cryptocurrency Mining. If you earn cryptocurrency through mining, the IRS considers it to be taxable income as a business activity. As such, mining income must be reported to you on Form 1099-NEC, based on the market value of the cryptocurrency at the time you earned it.

 

  • Non-Fungible Tokens (NFTs).  Minting your own NFTs or selling NFTs you purchased are transactions that may be subject to IRS reporting requirements.  Our experienced digital asset tax professionals are well equipped to help you stay in compliance with the IRS.

Our crypto tax specialists will review your crypto transactions and ensure they are reported properly.

Over the years, Cook Martin Poulson has been there to provide prompt, professional financial advice and services that we’ve needed to continue to grow, be successful and stay competitive within the industry.
Ty Measom
President, Camp Chef, Inc.

Cryptocurrency Tax Services

Utah cryptocurrency accountants

We offer a variety of crypto tax services for investors.

Cryptocurrency Tax Preparation

IRS rules regarding tax preparation can be confusing even without adding crypto to the mix. Mistakes can be costly and can lead to IRS fines and penalties, as well as the risk of an unfavourable audit outcome if your taxes aren’t properly prepared.

Our crypto tax professionals are here to help you prepare your taxes to reflect your digital asset holdings accurately.

Cryptocurrency Tax Advisory & Consulting

Whether you already have crypto holdings or you’re considering entering the crypto market, you may need tax advice and counseling to understand the tax advantages and risks. Collaborating with an advisor is the best way to understand your risks and your record-keeping requirements.

Our tax advisors can review your transaction history to help you understand your obligations and advise you on the best ways to minimize the risks associated with reporting crypto and other digital asset transactions.

Crypto Tax Planning

Tax planning is particularly important if you hold crypto.  Our crypto tax planning experts will review youCryptocurrency Tax Preparation Services Utahr situation and assist you in planning a strategy for crypto transactions that keeps you in compliance as a taxpayer.

Crypto tax planning can help you take advantage of deductions for capital losses and minimize the amount you pay for gains.

Cryptocurrency Tax Compliance

Anybody who owns crypto or other digital assets must comply with IRS rules regarding the reporting of capital gains and losses, as well as cryptocurrency obtained through mining and staking. Our experts are here to ensure that you follow the rules without overpaying your taxes.

We’ll ensure that you file the appropriate forms, report your gains and losses on time, and that your filings are up to date and accurate.

Why Do You Need a Crypto Tax Accountant?

Crypto Tax Accountant in Utah

Buying, selling, and paying taxes on cryptocurrencies is a complex endeavour, and making tax mistakes can be costly. Partnering with a tax accountant familiar with crypto and other digital assets will help to ensure that you adhere to IRS rules and pay what’s owed without overpaying.

At Cook Martin Poulson, we have the expertise and experience to help you navigate the ins and outs of cryptocurrency taxation. We’ll review your holdings, offer advice and strategic planning, as well as help you report your earnings to the IRS.

Don’t take unnecessary risks with your taxes. Collaborating with a crypto advisor and tax accountant is the best way to minimize your risks and maximize your earnings by avoiding overpayments and missing potential deductions.

Get Ready to File Your Cryptocurrency Taxes!

Filing taxes for cryptocurrency requires thorough knowledge and precision. We can help you with everything from tax planning to preparing and filing your taxes.

Schedule Your Cryptocurrency Consultation Now

Crypto Tax Accountant:

Jared Ripplinger
Jared Ripplinger
Location: Logan
Email: jripplinger@cookmartin.com
Phone: 435-750-5566
Fax: 435-787-4321

Learn More About Jared Ripplinger

Trusted By