As anyone who has ever bought and sold any sort of digital asset in the last couple years can attest, the rules and regulations around reporting those transactions to the IRS can be very fuzzy. Coupled with the lack of information made available by the IRS itself, and the lack of general knowledge and adoption of crypto by the accounting community, it can be very tough for investors to make heads or tails of it all.
At best, you manage to stumble across a couple of really helpful twitter posts or youtube explainer videos offering solid tidbits of information that may or may not be directly applicable to your individual circumstances. But at worst, you make a mistake in reporting your transactions in one year, that ultimately opens up your returns from previous years to scrutiny, and you find yourself in the middle of a full-blown audit with no idea how you got there.
In this episode, Malcolm Ethridge speaks with Micah Fraim, CPA and crypto enthusiast, about the taxation of crypto. Micah shares his knowledge about how crypto and NFTs are taxed, how to save money on taxes when investing in crypto, why you should stay up to date on the ever-changing IRS taxation policies about crypto, and how to track activity across multiple digital wallets without using a platform like Coinbase.
- How crypto and NFT trades are taxed today
- How to take advantage of the current crypto winter to save on taxes
- Why he is such a fan of cryptos and their future long-term
- Some recommendations for how to tack crypto activity and keep good records across multiple digital wallets
- And more