Jason M. Tyra, CPA, PLLC provides the virtual currency user community with tax, legal and consulting services to assist with implementation, management, and regulatory compliance. We were one of the first licensed accounting firms in the United States to provide bitcoin consulting and other virtual currency related services and remain at the top of a very short list of firms with the expertise to handle virtual currency related business.
Risky Business
Virtual currencies like bitcoin present unique compliance risks that subject individuals and businesses to a high level of regulatory scrutiny. If you are considering virtual currencies as an investment or as a component of your business strategy, you shouldn’t go it alone. We provide end-to-end business process consulting to help you get started and to support you along the way. For subjects outside the scope of our services, we can also provide access to a broad array of experts in other fields, including law, anti-money laundering compliance, cyber security / information assurance, and others.
Who’s Who in Virtual Currency
Our clients include some of the leading figures and companies in Bitcoin and Blockchain, along with many others using virtual currencies as a means of payment and store of wealth. Our past engagements have included audits, reviews, accounting system builds, tax work, and a variety of other specialized services with a virtual currency angle. Ask around- it’s likely you know someone who has either heard of us or worked with us in the past.
We regularly contribute to the conversation by offering expert commentary and other helpful information. Check out our blog to learn more.
Cryptocurrency Benefits and Risks
For those who have achieved success investing in digital assets, the future of digital currency is promising. From NFTs to other blockchain technologies, digital investors can engage with a whole new digital world of possibilities and profits.
The things that make cryptocurrency great are also the things that make them vulnerable. Crypto is a relatively recent development, and regulatory agencies like the Internal Revenue Service (IRS) take a closer look at these investors. Lawmakers are also investigating the potential – good and bad – of these revolutionary advancements.
Blockchain technology requires the user to have a unique private key to access each asset. Losing the key means losing hundreds of thousands or millions in digital assets. This security factor plus the decentralized structure of crypto means no centralized process exists to get a privacy key back once lost.
Protecting these assets is crucial, and you may be able to protect them and give your family peace of mind with an estate plan.
Tax Assistance with Cryptocurrency
Cryptocurrencies are taxable regardless of the type of coin you have. Whether you own Bitcoin Ethereum or other digital currencies, the IRS considers these assets taxable property. In general, the IRA taxes cryptocurrencies like other investments – the asset’s value and the investment yield are tracked and put into categories like other taxes.
Each transaction with crypto is taxable, and calculating what you owe from a trade can be complicated. Ultimately, digital investors must report crypto on their taxes by using Form 8949.
You will need to provide the following information to accurately report crypto to the IRS:
- Type of cryptocurrency
- Date of acquisition
- Date of sale, trade, or disposal
- Proceeds and sales price
- Cost basis
- Total gains and losses per year
You must report your capital gains from crypto as accurately as possible. If you are unsure about how to file or need assistance valuing your assets, speak with an attorney or fiduciary as soon as possible.
Cyrptocurrencies are Taxable Property
The IRS defines “virtual currencies,” such as bitcoin and ether, as property under the Internal Revenue Code (see IRS Notice 2014-21), which means that they usually receive treatment similar to securities (stocks and bonds) in the hands of an individual. Due to its unique features, virtual currency activity imposes a heavier tax reporting burden on users than traditional investments.
If you trade bitcoin or other virtual currencies, mine bitcoin, or accept bitcoin in payment for goods or services, then you must include your virtual currency activity on your tax return. You may also be obligated to report some holdings as foreign financial accounts either to the IRS or to FinCEN.
We Know Crypto Asset Taxes
Jason M. Tyra, CPA, PLLC provides full service tax preparation and tax planning services year round, in all fifty US states and to US expatriates outside the United States. We were one of the first licensed accounting firms to work with bitcoin and remain one of the leading firms in the virtual currency community. Our clients are some of the most prominent figures and companies in bitcoin. Ask around- even if you haven’t heard of us or worked with us in the past, it is likely that you know someone who has.
We calculate your gains or losses on virtual currency activity using your records so that you don’t have to. We also identify any deductions or credits to which you may be entitled and seek out opportunities to reduce your tax burden in future years. We believe that there is nothing patriotic about paying taxes that you don’t owe.
Our systems are designed for remote collaboration with your privacy and security in mind. We are conscientious and discrete. We understand the needs and expectations of the virtual currency community. We guarantee timely, accurate, and relevant service.
Contact us for a consultation or check out our blog for helpful bitcoin tax information.
Cryptocurrency Legal Services
Protect your property and grow your wealth. Cryptocurrency is an incredible investment opportunity that can lead to big yields. Protecting your assets is crucial if you are a crypto investor, and our attorney can help. Jason M. Tyra has extensive experience with estate and tax law. He can help you protect your valuable crypto yields from probate and excessive taxation while providing excellent legal counsel tailored to your unique needs.
Estate Planning for Digital Investors
An estate plan ensures that your assets are protected and that your family has peace of mind. Adults of any age should consider an estate plan to protect their assets, whether they own real estate or invest in cryptocurrency. There is no right or wrong time to start planning for the future, and for those with high-value assets, creating an estate plan now protects your valuable property from changes in the future.
Digital investors should include a step-by-step guide explaining how to access their digital assets. Including instructions eliminates the possibility of a sign-on error and ensures that the key is not lost in the process.
Crypto value is determined by an unregulated market which means the value could change rapidly in a short amount of time. An estate plan helps you set clear rules for managing your crypto accounts and grants access to people you trust.
Crypto Trusts
Another way to protect your cryptocurrency is with a trust. Trusts are fiduciary relationships between the trustor and the trustee. The trustor can retain ownership of the asset until death when it transfers over to the trustee.
A trust gives you the power to manage your assets and delegate ownership as you see fit. Depending on the type of trust you establish, the documentation can be changed and edited to reflect life changes or more valuable assets. For digital investors, this is very beneficial tool to protect your cryptocurrency. The crypto market is constantly changing and sometimes a traditional will cannot offer the level of protection you need.
Protect Your Cryptocurrency Today
Whether you need to create an estate plan, crypto trust, or tax assistance, Jason M. Tyra, PLLC, can help. We provide tax filing support, high-net worth trusts, and help digital investors create a plan after acquiring a large amount of money from crypto yields. Our attorney can protect your privacy and ensure that your case is handled correctly so you can have peace of mind and grow your wealth.
Reach out to our cryptocurrency consultant to schedule a consultation.