Sales Tax Institute’s Post

Which crypto tax software is best for professionals? We have tried all the crypto tax software in the market, and CoinTracking is the one with the most features and best tools for generating correct crypto tax reports. Here are a few of our favorite features: 🔹Over 10,000 Supported Integrations: Offers seamless connectivity with various exchanges, wallets, DeFi ecosystems, NFT marketplaces, and virtual environments within crypto games and metaverses, ensuring extensive API import options. 🔹FIFO, LIFO, HIFO & Average Cost Reporting: Users can select the most beneficial accounting method for their specific circumstances, facilitating optimal tax preparation across various exchanges. 🔹Complete Tax Reports: Effortlessly produces comprehensive tax documentation, including but not limited to Form 8949, Schedule D, FBAR, and detailed tax overviews, with options for tailored customization. 🔹Audit Support Guarantee: In the event of an audit, CoinTracking guarantees support by providing a professional tax advisor to assist in validating your tax submissions, backed by the precision of the software's reporting. ----- Want more crypto tax pro tips delivered straight to your inbox? Sign up for our newsletter, Chain Reactions, below! #crypto #cryptotax #cpa

The IRS's new Form 1099-DA could significantly alter how crypto transactions are reported in the US. Understand the key changes and what they mean for 2025. #NFT #Regulation #US https://lnkd.in/dfMBZFFC

If you are wondering why im slow to respond to messages. 😅 I'll give you a bit of insight on what we have been detangling here at MoonTax to explain.... NFT taxation can be complex, especially when scams are involved. Here's a look at two different scenarios that show how the method of attack and the timing of asset valuation can affect tax liability. Personal Case Study: ⭐ - Method of Attack: Bad contract link. - Timing of Valuation: Loss reported based on original cost basis of $58, despite the NFT being worth $16 at the time of loss. Personally within the last year I lost an NFT to a scam. The NFT was transferred out of my wallet to the scammer's wallet because I interacted with a bad contract link. My seed phrase remained secure, but the NFT was gone. According to tax regulations, the loss is based on the cost basis, which for this NFT was $58. At the time of the loss, the NFT's market value was $16. This discrepancy creates a unique tax reporting challenge because the loss must be reported at the higher original purchase price. Client Case Study: ⭐ - Method of Attack: Compromised seed phrase. - Timing of Valuation: Sale resulted in a profit on the wallet address due to higher NFT value at the time of sale for WETH. A client experienced a different type of scam where the attacker obtained their seed phrase, giving them full control over the client's assets. The attacker sold the client's NFTs for WETH on OpenSea, accepting the first bid available. This sale resulted in a profit because the NFTs were sold at a higher value than their original cost basis. The attacker then moved the WETH to various wallets. In this case, tax regulations require that the sale be reported based on the cost basis of the NFTs trade for WETH, even though the the NFT was owned by the client it was the WETH that was subsequently stolen. 🕵♂️ These scenarios highlight how the method of attack and the timing of asset valuation can significantly affect tax liability. It's crucial to understand these differences and speak with a CPA/Blockchain Forensics to ensure accurate tax reporting. Always stay vigilant with your security measures. #crypto #scam #tax

Crypto and other digital assets are currently facing the unprecedented prospect of 1099 tax reporting over transactions where substantive tax law about those transactions is still unsettled, according to Jessalyn Dean, vice president of tax information reporting at Ledgible. Here’s a look at the complexities posed by a potential IRS rule for reporting crypto assets, via FP sister publication Accounting Today. #crypto #cryptoassets #cryptocurrency #digitalassets #irs #tax #financialplanning #practicemanagement #compliance #regulation

🤓 Concept unveiled: Crypto tax calculators automate the process, so you don't have to manually input taxable events. Find out more!

New Zealands's Crypto crackdown: IRD says it can track down overseas data and cryptoassets. Inland Revenue says it is honing in on customers who are actively dealing in cryptoassets but not declaring income from them in their tax returns. Cryptoassets or cryptocurrencies were treated as a form of property for tax purposes. “What people make from selling, trading or exchanging cryptoassets is taxable,” the IRD said today - https://lnkd.in/gTpY7tcj #crypto #fintech #bitcoin

🤓 Concept unveiled: Crypto tax calculators automate the process, so you don't have to manually input taxable events. Find out more!

📢 IRS Proposes New Rules for Digital Asset Taxes! 💰💻 The IRS is cracking down on digital asset reporting! Proposed regulations would require "brokers" to report on crypto, stablecoins, and NFT transactions. Real estate brokers are included too! But good news for miners and stakers - they're exempt. Reporting starts in 2026. Learn more! #DigitalAssetTax #IRSRegulations https://hubs.li/Q026CRYS0

🚀 New IRS Regulations on Digital Asset Reporting: What You Need to Know! Big News for Cryptocurrency and Digital Asset Holders! The U.S. Department of the Treasury and the IRS have issued final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency. These new reporting requirements will ensure taxpayers file accurate tax returns for digital asset transactions, which are already subject to tax under current law. 📊🔍 Key Highlights of the New Regulations - Effective Date: Brokers must report certain sale and exchange transactions starting in 2025 using the new Form 1099-DA. - Public Input: The regulations reflect feedback from over 44,000 public comments, balancing industry concerns with the need to close the tax gap related to digital assets. - Scope: The regulations initially focus on brokers who take possession of digital assets being sold by their customers, such as custodial trading platforms, hosted wallet providers, and digital asset kiosks. - Exclusions: Decentralized or non-custodial brokers are not included in these initial reporting requirements. Future regulations will address these brokers. Why This Matters According to IRS Commissioner Danny Werfel, third-party reporting significantly improves compliance. These regulations aim to ensure that digital assets are not used to hide taxable income, helping to improve detection of noncompliance in this high-risk area. 📈💡 Additional Provisions - Real Estate Transactions: Starting January 1, 2026, real estate professionals must report the fair market value of digital assets in real estate transactions. - Stablecoins and NFTs: Optional aggregate reporting for certain sales exceeding de minimis thresholds. - Transitional Relief: Notice 2024-56 provides general transitional relief from reporting penalties and backup withholding for brokers who make a good faith effort to comply during 2025. How We Can Help Navigating these new regulations can be complex. For personalized advice and expert assistance, contact our COO Anshul Goyal at anshul@kkca.io. Our team of certified public accountants and enrolled agents specializes in digital asset compliance and can help you stay on top of your tax obligations. #TaxCompliance #DigitalAssets #Cryptocurrency #IRSUpdate #Form1099DA #CryptoTaxes #TaxRegulations #CPA #EnrolledAgent #TaxAdvice

Navigating the intersection of digital asset transactions and tax considerations? 🔍 Exploring Crypto Taxation with Zenit Wallet 🔗 https://lnkd.in/e2jrXGHj #financemagnates #fmnews #ZenitWorld #payments #paytech #Paymentsnews