The Truth about Income Tax and Crypto In America..
It's not surprising the IRS does not recognize crypto as currency, there are so many variables involved that make it more beneficial for them to treat it as real property rather than actual currency. There is not a whole lot that can be done in changing the IRC but there are strategies that can be taken to stay safe and compliant. I am a tax professional but am in no way going to claim to be an expert regarding crypto, I have been preparing taxes for 19 years and the one thing I have learned is to first admit that I don't know everything. Once I am able to admit this I can take each client I deal with and look at his situation and figure out the best way to move forward. There are many people that are more knowledgeable than I am regarding the memorization of tax codes for things they will never even need to know and I prefer to keep my clients best interests close to my heart and after reviewing their situation for us to decide together the best approach.
I have been involved with crytpo and steemit for almost 1 year and although this absolutely does not qualify me as an expert I have been blessed to be surround by the smartest and most caring people on the planet involved in steemit and the discord. I have been putting my thinking cap on just trying to think about the best way to handle my own tax situation regarding rewards and income in dealing with crypto. I have yet to pull money out (not that this matters in the eyes of the IRS) so it's only speculation on how I would actually begin to start. The most important thing I am personally going to be doing is once I adapt a system for myself with reporting earnings I will be using a continuous method and not deviate from this once I begin reporting earning.
Most of this is not even going to be questioned and from my experience this is the case. I just like to sleep at night and I feel that once I adapt a system of reporting and stick with it than I will be able to sleep just fine. The IRS can always find a way to call you out and that's why I have always looked at a tax filing as nothing more than an offer. Audits to me are like a counter off and while not having your offer accepted can be unsettling there have been many times where my clients have been better off after the audit than before. Counter offers are part of this game.
I have an office located in California and have been in the tax business my whole life, I worked with my Dad who started his tax practice in 1968 and when I branched off in 2005 I really found where my skills were most useful and that's listening and working hard for my clients to get the best possible outcome for their particular situation, and believe me the range of issues I have dealt with are vast and I continue to learn on a daily basis. I have learned a lot from my clients as well because I like to think that I am working with you and not for you. When you are up at night worrying, I am too.
I had a really great conversation with 
Hive account@aggroed tonight on 
Hive account@msp-waves and never even really thought about combining my tax practise with the steemit community until he mentioned it. I liked his idea of basing my fees on current steem price and while the broadcast was going on 
Hive account@scaredycatguide was mentioning his current fee for tax preperation and how his accountant was unwilling to accept steem and it really made me think. The only person I have ever helped on steemit with taxes I did for no charge and felt good about it, this is a community and a movement worth investing in and I look at my time as an investment as much as my money. There are so many amazing people giving their time to this movement and it makes me think that by holding back my profession it holds back the movement. Isn't this what this platform is really about? Adding value? Giving the best we have in us to the further good of the community. This is how I see it and how I have made my way to discord to network with the most committed steemians in the community.
I don't claim to have all the answers but do feel that by opeining my mouth and offering my services this will also attract other American tax preparers to open up the topic of how we are going to handle the tax implications. I have felt since January 2018 that if there is a general consensus how we as a community think we should be treated regarding taxes that if we make a stand and stick together we will be stronger united than divided. This is what the IRS wants. They are wolves hunting for the lost sheep in the pack and will likely stalk and kill.
I really want to thank Hive account@aggroed for the inspiring talk we had tonight on Hive account@msp-waves and really look forward to further conversations on the subject as well as hopefully meeting in Poland for the Steemfest 2018 like we talked about. First drink is on me Aggy and I really enjoyed our talk and appreciate all you do for Steemit as a witness #8 and for discords that help everyone so much. Thanks for your support and please visit my discord to talk further on this topic, I welcome a conversation and open dialog among professionals and tax filers as well, reach out to me on my discord with the provided links or engage in the comments. Thank you.
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