Have you been mining, trading or investing in cryptocurrencies? Then you may need a crypto tax specialist. Although crypto trading services already have tax calculators and methods of withholding tax, this may not be enough.
Here is what a crypto tax specialist can do for you:
1. Determine Your Tax Status
Are you a trader or an investor in cryptocurrency? This may not be clear for you – and why should you care? Well, you should, because you will pay taxes in a differentiated manner. And not filing them correctly may bring you the IRS at your doorstep performing an audit. You certainly want to avoid that type of trouble.
2. Help You Reduce the Amount You Owe in Crypto Taxes
With careful counseling from a recommended Highlands Ranch CPA, you can be eligible for fewer taxes. For example, in certain conditions you may not have to pay capital gain tax, but income tax. It all depends on how much crypto you hold and how you use it.
3. Identify Risks in Your Investment Activities
Are you sure that all your trading activities are legal and safe? A crypto tax specialist may identify aspects or trends which may look suspicious to the IRS. Also, you may get valuable advice to avoid scams and significant financial losses.