Cryptocurrency is a relatively new and exciting field. Blockchain technology has opened up tons of new applications and fields from Smart Contracts to instant money transfers to mining cryptocurrencies. Advocates claim it will impact our daily lives in the near future, and there is no doubt it affects your tax situation right now.
Congress and the IRS are figuring out how to deal with this new field, but the current guidance is that it is to be treated as property. But how this truly affects an individual’s tax return can vary widely depending on the specific situation.
Mining, Airdrops, Forks, transfers between exchanges, transfers between currencies, transfers to/from Fiat – all of these may have tax implications. And with the huge swings in the cryptomarket over the last couple of years, there could be a lot at stake. Having a professional on your side helping determine what is taxable and how it should be treated can change your tax bill by hundreds or thousands of dollars.
Yes, there are websites out there to help you gather your transactions and show you what you owe. They may even print out a form to give to your tax preparer or plug into TurboTax. But does your preparer (or off the shelf software) really understand what these transactions are? Are they comfortable giving advice about what constitutes capital gains or income? Cryptocurrency can be very overwhelming and confusing if you’re not familiar with it. Many preparers might not even want to touch it.
That is where KMS Tax Preparation comes in. Owner Kim Schorr has been taught by one of the leading CPAs in the cryptocurrency field. Kim knows the difference between mining and HODLing, between wallets and exchanges, between Bitcoin and Bitconnect. You want someone on your side who knows what you’re talking about.