I bit the bullet this year and decided to hire a tax professional to do my taxes and figure out the mess of mining/staking rewards, DeFi interest payments, and thousands of small trades and fees. So I coughed up the money for a Koinly tax report and sent him the goods.
I got a call back today just to go over everything before moving forward and I just lowkey mentioned the crypto side of things, and asked if he had everything he needed to figure that out, and if it was sufficient. His response was, “This is actually the most prepared I’ve ever seen anyone for this cryptocurrency stuff.” He also said the word “mining” as if he wasn’t quite sure what it was, and openly asked me what staking was. So in hind sight, it’s not clear I picked the right guy for the job. But I have faith in ol’ Tom.
TL;DR – U.S taxes are a shit show. Even professionals think so. We’re early.
17 thoughts on “Reassurance from my Tax Guy (U.S)”
He doesn’t need to have crypto knowlege to do your taxes properly. Tax advisors like lawyers deal with a lot of stuff they don’t have practical idea about. But they know how tax rules and law work so they can simply check out details. And as you said US taxes are shitshow, really complicated shitshow.
I know a certain tax guy who’s getting “The Complete Idiot’s Guide to Cryptocurrency.” for Christmas.
What was the dodgiest coin/token that you had listed which he had to report?
US Government: “we know exactly what you owe us.” Me: “Can you tell me?” US Government: “lol no.”
I hate tax time, nothing like seeing your losses on paper.
I was happy to learn my accountant knows crypto. She didn’t seemed bothered by 730 transactions on 5 exchanges. I did fail to ask what the additional cost was going to be but I don’t care. Tax time is always stressful.
I reported $100k+ of transactions of dogecoin. I don’t think the IRS wants anything to do with me.
How much will he cost you
My tax person told me it’s either a property like a house or a an investment like a stock.
There’s no way to classify it on the tax return as being mined.
taxes? hire trumps accountant
Australian Citizen here, I used Koinly after watching a Binance thing on it. Really it was a 1 hour marketing session but whatever. Got a discount code and installed it / signed up whatever connected wallets and thought it was pretty good showing me how up I was from initial (by god I was up). Anyways this meant taxes. I paid for the tax reports ($100ish). Informed me I had to mend a bunch of broken chains or “coins we don’t know how you got”. Binance to metamask and multiple pancake swap orders back to binance kinda confused it. That’s fine. My staking/mining etc was only small numbers but it knew.
Long story short – binance API is dogshit. The government aren’t going to go through it. They will take annual snap shots and go “jazza2400 had $xxx in 2020 now $0 in 2021 wheres our tax???” and you basically proving it you sold or lost it to justify what you are paying in tax.
edit: shit coins are a good way to say you lost money to reduce your tax. Just saying.
🤣 why would you expose yourself so soon. Of course its a shit show.
Don’t show your cards when you aren’t forced man…
Edit: hey man Im not being serious
Enjoy your Sunday
This is such a shill post for Koinly…
Seriously, any tax guy who isn’t brain dead is going to know the latest on crypto. That’s the highest in demand…
For which year? When you mine it? And then it appreciates. Or when you sell?
Crypto taxes are easy (literally my job so def a bias when I say that). Just fucking tedious af rn. Like a normal client takes me like 10hrs cuz all the software’s are ass.
If your tax guy needs any help, I know a firm lul.