The class I am taking from Natp spent a lot of time this morning talking about Crypto Currency. I cannot believe in the reporting requirements. I am contemplating putting in my annual letter to tell my clients tat anyone who is envolved with crypto currency should take their tax return to someone else because I simply do not feel that I want to have to deal with this. Would love to hear from as many of you as possible on what your opinion of Crypto currency is and what you are planning to do.
Had at least 50 clients with crypto. If using services like CoinTracker (from CoinBase) or RobinHood Crypto then it's just another 1099-B with no issue. If from some "lesser" company then it's just a date-order listing of buys and sells and impossible to work with - you can't match buys and sells since it's not buy 100 shares and sell 100 shares. Then I tell them - can't do it, unless it's only a couple in a year and that's easily tracked.
So far, I've not had any clients involved in virtual currency - thank goodness. I've also considered sending clients with VC to someone experienced in this.
I send them to a third-party service (such as Koinly) and have them give me the Koinly reports. In Drake, with a little massaging in Excel first, I can import a Koinly .csv file directly into Sch D/8949.
Had at least 50 clients with crypto. If using services like CoinTracker (from CoinBase) or RobinHood Crypto then it's just another 1099-B with no issue. If from some "lesser" company then it's just a date-order listing of buys and sells and impossible to work with - you can't match buys and sells since it's not buy 100 shares and sell 100 shares. Then I tell them - can't do it, unless it's only a couple in a year and that's easily tracked.
All my crypto people bring me a print out from Cointracker or Koinly or any of the other services than turns that crypto data dump into usable information for tax reporting.
After doing some more research on this if the crypto currency is with Organization's like Robinhood or some of the other companies I realise now that this information will come out on a 1099b and I should not have any problem on how to show it on their return. How ever if they get paid for services rendered or thru wages well that will be a nightmare on how to show it on the tax return.
I agree with the point you are making. However if they get paid with Criptocurrency either for services rendered or wages or if they pay for something with crypto currency well that is another matter.
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