Cryptocurrency Trading and Investing Tax Implications

Cryptocurrency trading, mining and/or investing is a new and complex part of the
financial market and the IRS has only put out preliminary guidance; state revenue departments have provided even less. However, ShindelRock tax professional have quickly and accurately learned how to evaluate a crypto trader’s tax liability and can properly advise crypto investors and traders about their individual tax responsibilities.

Common questions from our clients with crypto holdings and transactions include:

1. Are crypto-to-crypto transactions taxable? (answer: yes)
2. How do I determine my cost basis? (answer: FIFO)
3. How do I figure out my cost basis? (answer: www.cointracking.info or other sites like it)
4. Does crypto mining carry different tax implications and reporting requirements from crypto investing?  (answer: yes, because crypto mining typically involves software and hardware investments, and therefore becomes more like a business)

The world of cryptocurrency is just reaching mainstream, but the IRS and state tax officials expect crypto investors to report their crypto gains/loss like any other investor.  Don’t get penalized by the government for being an early entrant to this exciting market, ensure you are property reporting your crypto activities by completing the quick form below and a ShindelRock cryptocurrency tax specialists will immediately contact you: