Cryptocurrency is heading mainstream. According to a recent study conducted by New York Digital Investment Group, there are 46 million bitcoin holders in the US, and institutions have also shown increased interest in this space. 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. This course is designed to walk you through 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 and 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, and HIFO), self-directed IRAs, etc.
Learning Objectives
- Recognize the latest in blockchain technology and how it is impacting our world
- Understand how to interact with cryptocurrency
- Understand the tax implications of investing in cryptocurrency, running a mining operation, using NFTs, and using cryptocurrency as a payment method
- Recognize challenges in dealing with cryptocurrency-related clients
- Apply tax planning opportunities
- Serve clients with cryptocurrency transactions using a tool like CoinTracker.io
Major Topics
- What is blockchain technology?
- How do you buy crypto?
- How do you store crypto?
- Use cases of cryptocurrency
- Blockchain technology
- Use cases of cryptocurrency
- Tax overview
- How taxes work for cryptocurrency investors
- How taxes work for cryptocurrency mining
- Taxation of other transactions
- Foreign reporting requirements and crypto
- How to use a tool like CoinTracker to calculate capital gains and losses
- New developments in the space
- Tax planning opportunities
- Why do accountants need to care?
