4 Crypto Tax Tricks from Deloitte That Will Maximize Your Tax Return
CCN spoke to Deloitte tax partner Jim Calvin about the problems and strategies associated with cryptocurrency for his clients, particularly when it comes time for them to submit their annual tax returns.
Deloitte Tax Partner Spends More Than Half His Time Working on Crypto
Calvin got into cryptocurrency in 2014, when he was based in Asia. He says he began to get questions about Bitcoin from clients, and that he gained a personal interest as the first major crypto winter set in.
“In places like Hong Kong, Singapore, and Bangkok, the financial institutions and individuals wanted to know how to report this stuff for AML/KYC in a thing called FATCA, which is basically bank account reporting to the IRS.”
“On foreign bank account reporting, it depended on how they were holding it. If they were holding it themselves, it didn’t have to be reported. But if it was held on an exchange or by a custodian, then it would have to be reported. Most of the work I ended up doing was related to trading, investing, exchanges, and dealers, moreso than things like mining. I’ve never really done ICO work or centralized coin launches.”
Calvin says that most of his clients have had interest in Bitcoin and Bitcoin Cash.
“Mostly it’s Bitcoin. Occasionally we’ll have clients that hold other things like [Ethereum] or Monero. So it’s mostly issues around things like wash trading and tax straddles.”