Nick’s Note: With tax season around the corner, and the IRS getting serious about enforcing taxation on crypto gains… you need to take the tax implications of your crypto investments seriously.
That’s why world-renowned cryptocurrency expert and former hedge fund manager Teeka Tiwari has been scouring the world for a solution—and he’s finally found it. Read on below for his answer to this important problem…
By Teeka Tiwari, editor, Palm Beach Confidential
In 2017, I gave my accountant (who came highly recommended) my crypto tax file. He just about had a stroke when he saw how complex it was.
At $200 per hour, he billed me enough to pay for a nice addition to his house. And even then, he still gave me bad advice.
I asked my accountant about the Foreign Bank Account Report (FBAR). I wanted to know if I needed to file an FBAR with the U.S. Financial Crimes Enforcement Network (FinCEN).
The FBAR is a compulsory disclosure of a foreign account. According to the FinCEN site:
A United States person that has a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.
My accountant assured me I didn’t have to file one.
But I was in for a big surprise. I learned that if I held more than $10,000 in a foreign crypto account, I would have to file an FBAR with FinCEN.
It was only through a new crypto tax service that I discovered I did have to file an FBAR. The certified public account (CPA) I used was no slouch, either… But he clearly gave me bad advice. I contacted a new CPA, and we rectified the situation by filing an FBAR.
Over the past two years, I’ve received hundreds of emails from subscribers asking about cryptocurrencies and taxes.
I share their frustrations. Since 2016, I’ve wanted to offer my readers a definitive tax solution… I just needed to find the right one.
Today, I can tell you that I’ve finally found that solution. I’ll give you the details in a moment. But first, I want to tell you why you need to take the tax implications of your crypto investments seriously…
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The IRS Is Cracking Down
The IRS is useless when it comes to providing direction. (You can read its “guidance” on the tax treatment of virtual currencies right here.) To make matters worse, the agency is getting serious about enforcing taxation on crypto gains.
For instance, the IRS paid blockchain intelligence firm Chainalysis nearly $2 million to look for tax cheats. And in February 2018, crypto exchange Coinbase said it would turn over 13,000 client account records to the agency.
The writing is on the wall. Very soon, the IRS will be able to peer into every single crypto transaction on any U.S.-based exchange.
Another reason I wanted to find a crypto tax solution is that—as I found out myself—even trusted CPAs flounder when answering the most basic crypto-related tax questions.
That’s why I wanted to find a program that collects and organizes all of your crypto trade data into a usable format. Your CPA can use it to figure out your tax liability.
Now, I don’t provide tax, legal, or accounting advice. Keep in mind that this is general tax information. You should consult your own tax, legal, and accounting advisors regarding your specific financial situation.
But if staying compliant to the best of your ability is important to you—and it certainly is to me—I suggest you consider this new tax solution.
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I Bet This Tiny Piece of Plastic BANKRUPTS the Auto Insurance Industry…
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A Leading Solution
It bears repeating: I can’t provide you with tax advice. I’m not qualified to do so. That’s why I’ve been scouring the world for a tax solution I could recommend to you.
In May 2018, I discovered a young man working on a solution to this important problem.
His name is Pat Larsen.
Pat has a chemistry degree from the U.S. Air Force Academy and an MBA from the University of Chicago Booth School of Business. (That’s the same Chicago Booth that has spawned more Nobel laureates in economics than any other school, save Cambridge University in the UK.)
As a mission commander for the U.S. Navy, he oversaw four search-and-rescue choppers. He was deployed to Iraq twice, and his mission was simple: to rescue wounded civilian and military personnel.
When I discovered he was working on a tax software for cryptocurrencies called ZenLedger, I was intrigued.
He told me about his project, and I immediately knew it was a service my subscribers needed to hear about. At the time, Pat asked me not to write about it. He said it wasn’t ready for primetime yet—but it would be by October 2018.
And Pat’s a man who can hit a deadline. To his credit, his project is now up and running… and it’s awesome.
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A Tax Solution for Crypto Investors
ZenLedger is a tax software for cryptocurrency investors. It makes it easy for you to import cryptocurrency transactions, calculate gains and income, and autofill tax forms like the FBAR.
Further, ZenLedger prepares a number of useful documents such as capital gains reports and income reports, and it’ll keep adding more in the future.
It covers all the major crypto and fiat currencies. And it works with major crypto exchanges such as Binance, Bittrex, and Poloniex.
ZenLedger also plans to release a tool that shows you which coins are in the black and which are in the red, by exchange. This will allow you to sell losers and harvest tax loss assets.
This is the only accounting program I’ve found that covers all coins, all major exchanges, and most major wallets—and provides actual, live customer support.
It’s given me a credible and defendable position to take if the IRS asks how I accounted for my crypto taxes.
To learn more about ZenLedger, click here. Come tax season, you’ll be thankful you used it, too.
Let the Game Come to You!
Teeka Tiwari
Editor, Palm Beach Confidential
P.S. Tonight at 8 p.m. ET, I’ll be making an extraordinary announcement. It’s about an event that will transform the crypto market in 2019… And, I’ll show you a leaked Wall Street document that reveals what this event is.
Plus, I’ll tell you about my bold, new venture that could hand you the chance at an extra $81,624 per year.
You can still get your invitation for tonight’s free event. Just click here and enter your email address for free access right now…
MAILBAG
One reader has a concern about the future of cryptocurrencies…
From Charles H.: This is in response to Greg Wilson’s essay comparing cryptocurrencies to the early development of railroads (see last Friday’s issue, “Why Speculators Should Buy the Crypto Pullback”). While it was a great essay, I see one critical difference—but it may make all the difference…
To my knowledge, there was never a concern that the government would deem railroads illegal and regulate them out of existence. I believe there is a distinct possibility that the government and the big banks will set up their own centralized digital currencies. And they won’t tolerate competition from cryptocurrencies. No one seems to want to talk about this possibility.