With the tax season in full force, you may be looking for a crypto accountant to help you with crypto taxes, but what should you look for when hiring one?
A crypto accountant is a certified accountant in your country who specializes in crypto. Since cryptocurrencies have many facets, different from traditional investments, finding an accountant with experience is difficult.
Here are our top tips on finding your next crypto accountant.
Are there crypto accountants?
Yes, with the growth and intricacies of crypto, from DeFi to NFTs, more accountants started to specialize in crypto and offer tax services for crypto providers like exchanges and individual crypto investors.
Today, in every country where crypto is taxed, you can find crypto accountants ready to help. Check this network of 200 crypto tax firms in 25+ countries that can help your personal situation.
Do I need an accountant for cryptocurrency?
You may need an accountant for cryptocurrency if you have a lot of crypto trades to track and complex operations, for example, DeFi, node income, NFTs, staking, and others. These operations require better use of tools like crypto tax software and detailed tracking to make sure the information is correct.
If you are a professional crypto investor or have thousands of trades and different types of income, you’d find value in hiring a professional tax accountant for cryptocurrency.
What does a crypto accountant do?
A crypto accountant manages your crypto portfolio and calculates your crypto taxes to generate the necessary tax forms and file them each year.
If you work with great crypto accountants, they can optimize your taxes based on your profile and enable you to comply with all the rules while saving on your tax bill.
Do accountants do crypto taxes?
Yes, accountants can specialize in crypto and help you with the entire process of crypto taxes, from tracking your trades to determining your gains/losses, and generating the tax reports necessary to file your crypto taxes.
Calculating crypto taxes
You can simplify crypto taxes into two areas: crypto gains/losses and crypto income. When you trade cryptocurrencies, DeFi tokens, or NFTs, you’ll have a taxable event in the US, subject to capital gains taxes.
Your crypto gains tax rate will depend on the holding period of your crypto before selling, running from 0% to 37% (long-term capital gains tax rate versus short-term capital gains tax rate).
If you earn crypto income from crypto interest vehicles, staking, airdrops, hard forks, play-to-earn games, or others, you’d be taxed at the income level, depending on your total taxable income bracket.
What accounting method should I use for crypto?
In the US, you can choose “First-In, First-Out” (FIFO) or “Specific Identification” (OPTI) to calculate your crypto taxes. Discover more about the right accounting methods to calculate your crypto gains and losses.
How to choose a crypto accounting firm
There are some evaluation criteria you should have when choosing a crypto tax firm to help with your crypto taxes, including:
- Certify that the tax firms you’re contacting have experience with crypto taxes, given its complexity and differences from other assets.
- Become involved online in communities like Crypto Twitter, where you’ll find top crypto accountants providing value in content form.
- Talk to the accountants you’re exploring about recent changes in your country’s laws regarding crypto and understand how that affects crypto taxes.
- Prepare ahead. Track your crypto trades during the year to make the crypto tax process easier when you start to work with a crypto CPA.
- Be prepared to pay a premium price since crypto taxes are a new and highly specialized segment requiring unique knowledge. Allocate a budget for this each year to get the best possible service.
Crypto tax accountants near me
You can find crypto tax accountants in the US, Europe, South America, and Asia in our extended 200+ network of crypto tax firms.
Those accounting firms can help you with crypto tax questions while leveraging CoinTracking, the best crypto tax software in the market.
Currently, we feature over 75 crypto tax accountants in the US, 49 crypto tax firms in Germany, 6 in the UK, 21 in Australia, 40 in Spain, and 9 crypto tax companies in Canada.
You can find more available crypto tax accountants in Finland, Brazil, India, Austria, Hungary, Ireland, Italy, Liechtenstein, Portugal, Sweden, Switzerland, and more!
The best crypto tax software: CoinTracking
The best crypto tax software in the market is CoinTracking.
You can import your trades using CSV or API, track your gains/losses, and generate tax reports according to your preferred accounting method.
CoinTracking is your full crypto tax solution for:
Moreover, CoinTracking can easily classify all your earnings from yield farming, liquidity pools, crypto staking, and much more.
Crypto taxes with no errors: CoinTracking Full Service in the US
CoinTracking also offers a Full Service for US traders. A crypto reconciliation tax expert from Polygon Advisory Group, a leading US crypto tax firm, will review your CoinTracking account, help fix any errors, and ensure you submit your crypto tax reports error-free.
Disclaimer: All the information provided above is for informational purposes only and should not be considered as professional investment, legal, or tax advice. You should conduct your own research or consult with a professional financial advisor when investing.