Cryptocurrency Tax CPA Based In McKinney, Frisco, Plano And Collin County Texas
If you are looking for a Certified Public Accountant (CPA) who can help you prepare your tax returns if you have invested or traded in cryptocurrencies then contact us. We are located on the border of Frisco and McKinney Texas (Collin County), and we are convenient to those who live or work in Allen, Celina, Fairview, Melissa, Plano, Prosper and nearby communities. We also have virtual CPA services where we can help you with your tax preparation and CPA needs throughout Texas and the rest of the United States.
John Harman's years of experience as a CPA can help you with future tax planning, deductions, retirement planning, and other financial services in addition to your trading or investing in cryptocurrency and other blockchain & digital assets. Our goal is to help you reduce your taxes pertaining to cryptocurrency while reducing the risk of audits or IRS and state-level tax-related penalties.
We will help you minimize your tax liability across all of your business assets, personal income and cryptocurrency (such as BitCoin, Etherium, DOGE, XRP or other blockchain/crypto assets) activity. Some of the new income in the cryptocurrency assets include interest paid if you "rent" your coins, sell digital/virtual "land" (aka "virtual real estate") and more. Whether you mined cryptocurrency and need to create a P/L statement, or if you have capital gains or losses from trading various coins, we can help you with your overall tax situation.
We also can help you if you were paid as an independent contractor - or paid independent contractors - in virtual currency or some form of cryptocurrency.
Contact us at the phone number above or through the contact form on this page. We look forward to serving your tax, financial and retirement planning needs soon!
IRS Rules On Taxes For Cryptocurrencies And Other Digital Assets
For more on the IRS and cryptocurrency (aka "virtual currency") you are welcome to visit: https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions
Here are some sections from that page:
"Will I recognize a gain or loss when I sell my virtual currency for real currency?
A4. Yes. When you sell virtual currency, you must recognize any capital gain or loss on the sale, subject to any limitations on the deductibility of capital losses. For more information on capital assets, capital gains, and capital losses, see Publication 544, Sales and Other Dispositions of Assets."
"The 2020 Form 1040 asks whether at any time during 2020, I received, sold, sent, exchanged, or otherwise acquired any financial interest in any virtual currency. During 2020, I purchased virtual currency with real currency and had no other virtual currency transactions during the year. Must I answer yes to the Form 1040 question? (3/2/2021)
A5. No. If your only transactions involving virtual currency during 2020 were purchases of virtual currency with real currency, you are not required to answer yes to the Form 1040 question."
"Do I have income if I provide someone with a service and that person pays me with virtual currency?
A9. Yes. When you receive property, including virtual currency, in exchange for performing services, whether or not you perform the services as an employee, you recognize ordinary income. For more information on compensation for services, see Publication 525, Taxable and Nontaxable Income."
"Does virtual currency received by an independent contractor for performing services constitute self-employment income?
A10. Yes. Generally, self-employment income includes all gross income derived by an individual from any trade or business carried on by the individual as other than an employee. Consequently, the fair market value of virtual currency received for services performed as an independent contractor, measured in U.S. dollars as of the date of receipt, constitutes self-employment income and is subject to the self-employment tax."
"One of my cryptocurrencies went through a hard fork but I did not receive any new cryptocurrency. Do I have income?
A22. A hard fork occurs when a cryptocurrency undergoes a protocol change resulting in a permanent diversion from the legacy distributed ledger. This may result in the creation of a new cryptocurrency on a new distributed ledger in addition to the legacy cryptocurrency on the legacy distributed ledger. If your cryptocurrency went through a hard fork, but you did not receive any new cryptocurrency, whether through an airdrop (a distribution of cryptocurrency to multiple taxpayers’ distributed ledger addresses) or some other kind of transfer, you don’t have taxable income."