Cryptocurrency is the new kid on the block in the investment world, but it is not going anywhere, any time soon. The barrier to enter is very low, and the upside is possibly very high. With this perfect storm, there are a lot of first time investors. who most likely are not familiar with cryptocurrency taxation laws. You can be the one that helps them understand it.
We looked through our previous tickets, and compiled a list of questions that were referred to tax professionals. Having answers to the questions in this list would be great for any accountant, especially those getting started in cryptocurrency taxation.
• Do I need to file taxes for my cryptocurrency?
• Some of my cryptocurrency was lost/stolen, can that be used as a loss for my property tax?
• Should I report airdrops/forks as income or gifts?
• What cost basis should I assign to airdrops/forks?
• If I have a small amount of unmatched trades, will that cause a red flag with the government?
• With regards to my cryptocurrency trades, do I just need to provide the capitol gains report, or does each trade need to be individually reported?
• If I borrowed cryptocurrency as a loan, do I need to report it?