We are seeing increasing discussion around taxing cryptocurrencies inside and outside of the Accountants' Club, so we thought this article by Price Bailey would provide some useful advice around reporting issues. It points out the difficulties of accurately calculating gains and losses due to the price volatility, the sheer number of transactions that take place each tax year, and the temporary nature of transaction records on cryptocurrency exchanges. The article suggests therefore that the onus isn't just on the accountant, but on the investor to save records on a spreadsheet, especially if they envision many transactions. When it comes to the accountant, it's important for them to take into account the multiple cryptocurrency wallets an investor has across multiple platforms and to calculate them together to work out P&L. Are these practices that you already have in place or that you are looking to implement?
Posted by Accountants' Club at 2022-01-26 09:18:38 UTC