News

Cryptocurrency is heading mainstream. According to a recent study conducted by New York Digital Investment Group, there are 46 million bitcoin holders in the U.S. This constitutes roughly 17% of the adult population. Institutions have also shown increased interest in this space. Publicly traded companies like Tesla, MicroStrategy and several other fintech giants have invested their corporate cash reserves in bitcoin. PayPal, Venmo and Robinhood have offered cryptocurrency services to millions of users. These factors have collectively pushed the market capitalization of cryptocurrency to over 1 trillion and bitcoin to it’s all-time high value of $63,000 in 2021.

The rising popularity of cryptocurrency and the inclusion of the virtual currency question on the front and center of Form 1040 have made cryptocurrency a subject that tax practitioners cannot afford to ignore anymore. Let’s walk through the tax implications of common cryptocurrency-related transactions (trading, mining, spending, staking, etc.) and how to successfully service clients affiliated with cryptocurrency by using a tool like Cointracker. This session also covers current developments surrounding this topic, such as the inclusion of the virtual currency question on the front of Form 1040 and how to successfully navigate through tax notices like CP2000, Letter 6173, Letter 6174 & Letter 6174-A. We will also get into some of the unique tax planning opportunities in the crypto space such as tax loss harvesting without being subject to wash sale rules, tax lot ID optimization (FIFO, LIFO & HIFO), self-directed IRAs, etc.

Get answers to your cryptocurrency questions or take your knowledge to the next level with Shehan Chandrasekera in the Nuts & Bolts of Cryptocurrency Taxation at Elevate. Register now!