Due to the evolving nature of the cryptocurrency market and the varying tax regulations across different jurisdictions, it can be difficult and challenging to navigate cryptocurrency taxes. Therefore, it may be more prudent to seek the expertise of a crypto tax specialist if you want to ensure you remain on the safe and legal side of the matter. There are many areas in which this kind of specialist can provide valuable assistance.
A crypto tax specialist can help you understand your tax obligations related to cryptocurrency transactions, such as buying, selling, trading, mining, staking, and receiving airdrops. An accountant near me with crypto tax knowledge can also help determine whether your activities classify as investments, business income, or capital gains based on your jurisdiction’s tax laws.
Also, a crypto tax specialist can guide you on how to accurately report your crypto activities on tax forms, such as the Schedule D (capital gains and losses) or relevant sections of your tax return. They can assist in organizing your transaction history and ensuring you meet all reporting requirements.
At the same time, calculating the cost basis (the original value) of your cryptocurrencies can be complex. Luckily, such an expert can help you accurately determine the cost basis for each transaction.