Expert Cryptocurrency Tax Advisory & Compliance Services

Cryptocurrency is taxed as property by the IRS, but its treatment differs significantly from other capital assets due to its decentralized nature, high transaction volume, and unique reporting challenges. At PacificWestTax, we help crypto investors and businesses navigate complex tax obligations while minimizing risk and maximizing after-tax returns.

How Cryptocurrency Taxation Is Different

Unlike traditional capital assets like stocks or real estate, cryptocurrency taxation involves:

• Frequent Taxable Events – Every trade, swap, or sale is a taxable event, even when crypto is exchanged for another crypto.
• Cost Basis Complexity – Tracking basis and fair market value across multiple wallets and exchanges is often difficult without expert tools.
• Hard Forks, Airdrops, and Mining Income – These require different tax treatments and must be reported as ordinary income.
• NFTs, DeFi, and Staking – Newer crypto activities add layers of complexity with varying classification and timing rules.
• International Exchange Use – Using foreign crypto exchanges may trigger additional FBAR and FATCA reporting.

Our Cryptocurrency Tax Services

• Crypto Tax Return Preparation (1040 + Schedules) – Accurate reporting of gains, losses, and income across wallets and platforms.
• Capital Gains Tracking & Optimization – Use of FIFO, LIFO, or specific identification methods to reduce tax liability.
• DeFi, NFT, and Mining Income Reporting – Guidance on classifying and reporting complex crypto transactions.
• Audit-Ready Documentation – Organized, defensible reports that stand up to IRS scrutiny.
• FBAR/FATCA Compliance for Offshore Wallets – Ensure international crypto holdings are properly disclosed.

Why Choose Us?

• Specialized Knowledge in Crypto Taxation – We stay current on IRS crypto guidance and evolving industry norms.
• Custom Solutions for Traders, Investors & Founders – We work with casual investors, active traders, miners, and Web3 entrepreneurs.
• End-to-End Crypto Tax Support – From transaction cleanup to final return filing, we handle every detail.

If you're earning, trading, or investing in crypto, don't leave your tax strategy to chance. Let us help you minimize taxes, avoid penalties, and stay compliant in this fast-evolving space.

📩 Contact us today to schedule your crypto tax consultation.

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