Virtual Currencies 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 Virtual Currency 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.