Hello everyone, longtime lurker and I had a few questions, specifically with regards to my cryptocurrency ("CC") holdings, including if and when I should get an accountant and/or talk to a tax consultant. Also, it's worth noting, especially when the term CC comes up, that I am very involved in the finance/economics, mathematics, and technology space, so I am very comfortable with my investments. I am also (financially and emotionally) comfortable with my investments losing most of their value. I pay my credit card bill off in its entirety every month, and I regularly budget and track my spending habits via a personal finance spreadsheet. Additionally, I have various investment accounts, including an IRA, and I do contribute, biweekly, to my checking's account that has enough cash (USD) in it to last me one year—in case of any emergencies.
Background/Context
I'm still an undergraduate student, and I do not trade my CC holdings or any of the securities within my investment accounts. Nonetheless, I am still hodling onto almost all of my original CC investments, and each CC remains in an extremely safe and diversified location; with each location having its own unique layers of security. Originally, I used an exchange to buy them and send them to their end location, and the exchanges generated PDF/.CSV reports of all of my transactions; but I'm not sure if their reports will work with my tax platform's software. For one particular cryptocurrency that I have been buying consistently, multiple exchanges and conversions are involved. And with regards to another CC, I recently decided to convert it to another after realizing capital gains, which I know is a taxable event. Lastly, I have been staking a particular cryptocurrency, and I have made some money by doing this. Because I run a subreddit dedicated to monitoring the cryptocurrency regulatory space, I know that the United States lacks clear tax guidance for this process; and I'm very confused about how to go about reporting my rewards from staking.
For 2020 and 2021, I'm questioning if I need an expert to clear up any loose ends I've had with converting and sending my holdings, even though I have not yet realized a majority of those capital gains. I know, in general, CC guidelines can be unclear and that there are many different strategies/methods as to how you should report your cryptocurrency holdings. I'm also wondering if there is a specific amount that would warrant an accountant/consultant to avoid any negative tax implications in the future. Any specific details you can give and any advice is very much appreciated.
Thank you for any help and/or resources you can provide.
Submitted February 09, 2021 at 05:36PM by UglandHouse https://ift.tt/3p7bcun
