Short answer: Yes, we do.
Long answer: We work with many clients who actively trade cryptocurrencies, mine, or hold onto some form of cryptocurrency. When we discuss cryptocurrencies with potential clients, we ask about the following:
- Do you keep track of your basis?
- What exchanges are you currently on?
- Are you using cryptocurrency as a currency or just investing in it?
- Are you actively mining?
- Are you trading cryptocurrency on a regular basis?
If you are not keeping track of your basis, we recommend using the website www.bitcoin.tax to manage your portfolio. TL;DR: Accounting has an account on the website so we recommend inviting us to your account as your accountant. From there, we can pull your tax information as needed. This is especially useful if we are helping you with tax planning.
If you would prefer to not set up your own account, we will be glad to do it on your behalf as long as you have the correct imports for the year.
There’s no problem if you use an online service other than bitcoin.tax. In such cases, we’ll need your tax reports, and possibly some additional information, to work with and advise you on your cryptocurrency situation.
Why Should I Use One of the Cryptocurrency Tracking Services?
The biggest reason to use a service like bitcoin.tax is to save time. Pulling and collating information and matching lots sold with lots purchased takes a long time by hand — a fact we discovered in the past, before the advent of these types of online services.
If you are on several exchanges or if you are transferring coin between exchanges for a better service fee rate, we highly highly recommend using one of the tracking services since it’s important to make sure you are not duplicating coin across your reports. You don’t want something to be counted as a sell when it was actually a transfer.