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January 12, 2022

My Clients Traded Crypto (or NFTs) Last Year – What do I do?

I think we can all agree that tax season is one of the most exciting, stressful, and often overwhelming times of the year for tax professionals and accountants. From the IRS' changing guidelines, clients' changing tax situations, and now, new asset classes like cryptocurrencies, decentralized financial products, and NFTs. However, understanding crypto tax doesn't have to be hard.

How many tax filers have cryptocurrencies?

The IRS expects that 18 to 21+ million people in the US alone will need to file some sort of cryptocurrency transaction in their returns this year. In reality, the number of cryptocurrency transactions and individuals that need to report that information is unknown and could be much larger than the IRS's estimation. Regardless of what the real number is, the reality of the matter is that increasingly, tax professionals and tax practices are going to have to start processing cryptocurrency transactions as part of their annual tax preparation process.

Some practices are positioning themselves as crypto tax experts, capable of handling any and all kinds of cryptocurrency and NFT transactions for their clients. This is providing them a competitive edge to younger and more technically diverse clientele looking for tax professionals that understand their unique situations.

How your tax practice can compete in crypto

But how can you compete? In reality, cryptocurrency and the idea of decentralized finance is complicated and that also means that the tax and accounting situations that surround the space are also unique. Manually sorting through client's cryptocurrency transactions and holding is no easy task, especially when you consider that some clients can have made transactions across a wide array of platforms, hold crypto in private wallets, and bought and sold a number of things with the new digital currency.

Before your anxiety start increasing as you wonder how on earth you could possibly manage that amount of complex and new-to-you data, there is a quick and easy solution. The tax professionals and cryptocurrency experts at Ledgible have created the leading software solution for tax professionals, complete with client management, team management, and automated reporting. Ledgible Crypto Tax Pro takes the complexities of crypto transactions, crypto taxes, and crypto accounting, and makes it all Legible to the traditional tax filing process.

Your crypto tax filing software solution - How is Crypto Taxed?

If you're a tax professional, chances are you use tax filing software from Thomson Reuters or Wolters Kluwer. Ledgible Crypto Tax Pro is the only solution that fully integrates with both of these solutions, allowing you to quickly integrate cryptocurrencies and NFT trading into your existing tax workflow. And if you don't use one of these leading tools, Ledgible integrates with most of the leading tax software - and when it doesn't directly integrate, will provide you with all of the necessary forms and reports needed for traditional tax reporting.

Becoming a cryptocurrency tax and accounting expert requires little more than equipping yourself with the right tools into your tax arsenal. The best part is Ledgible Crypto Tax Pro is completely free for tax preparers. You can get started, add clients, and start planning out your clients' crypto tax season. Ledgible's flexible billing options allow for you, the tax preparer, to bill clients as part of your tax preparation fees, or you can set up other billing options - whatever works for your practice.

So, if you're looking to set yourself apart from other tax professionals and practices by becoming a cryptocurrency tax and accounting expert, the solution is simple, register for Ledgible Crypto Tax Pro today!

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