Cryptocurrency and Virtual Currency Accounting
Real Estate and Construction Accounting
Hey Saim! I trade cypto using multiple exchanges. How should I track my overall balances (gain/loss)?
The process of crypto accounting is similar to that of a business. The first step to do is to connect your wallets to a coin tracking software (example koinly or cointracking etc).
This will ensure your cost basis of all your particular crypto lots are recorded as each crypto transaction is unique. You have to view all deposits and withdrawals and take a closer look at what is happening.
You need to know what transactions make up income vs capital gains. Once all data is properly tagged and reconciled, then you can view your Tax liability.
Consult with a CPA on how to reduce your Tax liability and what strategies could be applicable in your case.
© Saim Akif, 2021