Cryptocurrency Taxes – Important Questions to Ask Your Tax Accountant

Cryptocurrency Taxes

Before you go ahead and report the profits to the IRS for the year’s tax season, it is best to consult your tax accountant and learn how to prepare for the tax season well. You should expect your tax accountant to guide you through the process and make you aware of your tax obligations.

It is important for you to know what kind of questions to ask your tax accountant concerning your cryptocurrency taxes. This article will go into some of the most important questions that you should ask your tax accountant:

Have You Worked With Clients for Cryptocurrency Taxes Before?

If you are looking for a reliable tax accountant who will not lead you astray, it is vital to find out if he has the required past experience in dealing with cryptocurrency taxes. He should possess the necessary knowledge along with skills to help you understand how to plan your cryptocurrency taxes for the year.

Can You Help Me Understand What are Taxable Crypto Events and Non-Taxable Crypto Events?

It is essential for you to know all about taxable crypto events and non-taxable crypto events. However, this can be difficult for you to know all by yourself. This is why it is essential to consult a tax accountant who will analyze your transaction history and identify the events that are taxable and the events that are non-taxable.

Taxable Crypto

Apart from this, the tax accountant will also analyze your overall tax condition and determine the kind of tax and the amount you will need to pay on every cryptocurrency that you have in your portfolio. An investor will typically have two types of taxes to pay every year, i.e., Short-term Capital Gains Tax (SCGST) and Long-term Capital Gains Tax (LCGT).

How Can I Get My Hands on Accurate Crypto Transaction Records?

Getting your hands on crypto transaction records will help you in many ways. Your tax accountant should be able to help you understand the process of getting your hands on these crypto transaction records. This step is especially important if you engage in crypto-to-crypto exchange. You will be able to calculate your capital gains for the year easily. You can also use a reputed, high-quality software available in the market to arrange and analyze your records.

I Haven’t Reported My Crypto Investment in Tax Returns From Many Years Now. What Should I Do?

The last thing you want to happen to you is for the IRS to find out that you have been missing your tax payments. You will be held liable for tax invasion and go through many difficulties. Hence, make sure that you find a tax accountant who will be able to help you with this and make the necessary disclosures and amendments.

To Sum Up

If you plan on visiting your tax accountant, make sure to keep these questions at the forefront of your awareness. Your tax accountant should ideally be able to answer all these questions and give you clarity on them.

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