Personal/Individual Taxation

Some frequent areas that we consult our clients on:

Self-employment/contractor/freelancer income
Rental property
Sale of Home
Equity Compensation: RSU, ESPP, ISO, NSO, etc.
Multi-state allocations
Company IPO, mergers & acquisitions
Crypto currency (see below for more)
Foreign Income Exclusion & Foreign Tax Credit

Our individual tax services provide timely and accurate results. For individuals with Equity Compensation, we can ascertain when and how to exercise or sell your stocks/options to optimize your net after tax income based on your vesting schedule.

For individuals with businesses, we can evaluate the need for quarterly tax payments as well as methods to structure your company, such as possible 1120 S Corporation conversion or other types of credits & deductions.

Tax Planning

Over the years, clients have given us one important piece of feedback: they often do not want someone “just filing our taxes.” Long-term strategy and building a relationship are important considerations. Some frequent topics that we are engaged to discuss include:

Equity compensation – timing & quantity of stock option sales/vesting
New home purchase & related tax effects
Joint vs. separate tax returns
Tax benefits of dependents
Quarterly estimated taxes
Moving states

Feel free to contact us to discuss any of these (or any other) long-term tax planning topics.

Cryptocurrency Taxation

There has been confusion on how virtual currencies will be taxed. Some believe that they qualify for like-kind treatment, some believe that all must be reported as capital gains, and some are just confused as to what to do with their 1099-K form from coinbase or other wallets.

Much of the information you will find on forums, non-CPA blog posts, and twitter can be either slightly incorrect or completely incorrect. This has led many to mis-report their cryptocurrency transactions.

Some important points are:

You possibly qualify for the qualified trader election
You could be able to net gains/losses from your crypto toward other items on your return, such as ordinary income, other equity transactions, etc.
Income from mining, employment, etc. that is paid in cryptocurrency is reported differently than income from trading
If you exchange one coin for another, then yes, that is a reportable transaction. However, do not be overwhelmed with the thought of reconciling records of many trades across many exchanges – we have a simple process to aggregate this information.

Cryptocurrency FAQs

Question: I forgot to report crypto on my prior year returns – what should I do?

Answer: The IRS is cracking down on individuals that have not reported crypto – this is not professional advice until you contact us, however, you must amend your returns to include this right away.

Question: If I traded from one crypto to another but did not convert back to fiat, do I have to report that?

Answer: Yes, that is a reportable transaction on form 8949.

Question: How do I generate this form?

Answer: There are countless platforms that will generate this for you by linking to your exchanges. Examples are cointracker.io and cointracking.info, however, there are dozens that function similarly.

Question: What if my exchange was shut down or the data is no longer available to me?

Answer: You are allowed to use estimates – if you are not sure how the rules around estimates work, please book a consultation with us & we will guide you.

Question: I have more than one type of income from my crypto – should I report interest separately from trading, for example?

Answer: Yes, each activity may have its own reporting requirements, so reach out to us and we will parse through your activity to determine which forms & schedules you are required to file.

Question: I was the victim of crypto fraud – is this a deduction?

Answer: Yes, financial fraud is still deductible. We can help you with this deduction

Question: I have millions in potential crypto gains – are there any strategies for me to write-off this income? Can I also move to a state with less (or no) income tax?

Answer: There are quite a few strategies to be implemented here depending on your individual circumstances – contact us to discuss.

Question: I have already generated my 8949 but my cost basis does not look right – what do I do?

Answer: Contact us

Question: I barely had any trading activity – should I report? The activity was less than the 1099 requirement

Answer: The IRS requires that you report this activity, even if only $100 worth of transactions. This is because although there is a threshold for Coinbase (for example) to generate a 1099, you are still required to report it.

Question: If I trade crypto frequently for example buy and sell within 30 days, will the wash sale rules apply to my loss?

Answer: Wash sales rules don’t apply to crypto. If you sell crypto for a loss, you can use the loss to offset the capital gains.

Personal/Individual Taxation

Tax Planning

Cryptocurrency Taxation

Cryptocurrency FAQs

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