Accounting Service For Cryptocurrency Trading – One Hour

Update Dec. 10, 2019: We offer our trade accounting service only in conjunction with our tax compliance service, and no longer as a stand-alone service.

If you invested in cryptocurrencies and sold or spent some during the year, it likely triggered a capital gain, loss, or other income, which you should report on your tax return. There is taxable income or loss on all coin transactions, including coin-to-currency trades, coin-to-coin trades, receipt of coin in some hard fork or split transaction, purchases of goods or services using a coin, and mining income. There are various types of fees related to coin transactions, and the tax treatment varies.

Cryptocurrency tax reporting is complicated and voluminous. We use a coin accounting solution to download coin transactions from your coin exchanges. You need to review the download file to be sure all your transactions were imported correctly. It's normal to have some transactions entered manually.

By the default, we use the first-in-first-out (FIFO) accounting method for cost-basis on coin capital gain and loss transactions. The IRS requires the "specific identification" (SI) accounting method on intangible property, but most coin traders are unable to use SI since coin exchanges must confirm each SI transaction, and they do not.

As intangible property, cryptocurrencies are not subject to Section 1091 wash-sale loss rules for securities. A Section 475 election also cannot apply to coin since it's not a security or commodity (Section 1256 contract). (See our coin tax and accounting content.)

How our service works

We download your coin transactions into coin accounting software and generate Form 8949 You can give this Form 8949 and other tax reporting to your tax preparer or our CPAs for our tax compliance service.

Want a quote?

Email us a list of your coin exchanges for the year. Tell us the type of trading you did and how you spent coin during the year.

Cost calculator

Our trade accounting service averages 2 to 3 hours per year.  The number of hours is contingent on the number of coin exchanges you used and if the imports go smoothly.

We have a good idea of total cost after we spend the first-hour reviewing your files and situation. So purchase that one hour to get started.