VIRTUAL CURRENCY
Do You Own Digital Assets?
If you are using cryptocurrency in any form, or buying and selling digital assets such as NFTs, we need to know about it. Examples of transactions that may affect your tax return include:
▶ Buying and selling (other than buying and holding)
▶ Exchanging one virtual asset for another
▶ Receiving crypto or assets from others
▶ Making purchases with crypto
▶ Mining or staking
▶ Receiving assets via airdrop or hard fork
▶ Donating digital assets to charity
REQUIRED INFORMATION
If you have any type of crypto or digital asset activity, discuss with your preparer.
If you have sold or exchanged virtual currency, we need tax forms generated by a cryptocurrency tax service. You can use any service that will generate IRS forms 8949 summarizing your activity, plus totals.
If you cannot generate forms on your own, we may still be able to assist you if you do all your trading on an exchange and you can provide a CSV or Excel file of your trading history from the date when you first started any digital asset activity.
If you regularly move assets between exchanges or have a significant number of transactions outside of an exchange, we will discuss with you whether we can handle your return.