Bitcoin Accountant + CPA Firm
Bitcoin may be digital. The tax trail still has to reconcile.
Bette Hochberger, CPA, CGMA has worked around Bitcoin and digital assets since the early days of the market. We help investors, miners and businesses turn wallet and exchange activity into defensible accounting, tax reporting and planning.
Bitcoin experience
A technology-forward CPA firm that was paying attention before crypto became mainstream.
Bette is an MIT alumna and technophile whose first Bitcoin blog post dates to 2014. The firm also accepts Bitcoin, other digital assets and traditional fiat payments.
Bitcoin tax work is not simply a matter of downloading one exchange statement. Investors can have activity across centralized exchanges, self-custody wallets, cold storage, payment processors and business accounts. The accounting file needs to distinguish transfers between a taxpayer’s own wallets from sales, swaps, spending and other dispositions.
The firm has supported multiple tools for digital-asset data extraction and reconciliation, has worked as a strategic partner with TaxBit, and has been active in the MiamiTech and Web3 community. Client activity often extends beyond Bitcoin into other cryptocurrencies, NFTs and DAOs, so that broader ecosystem is familiar rather than unusual.
Current broker reporting does not eliminate the need for the taxpayer’s own records. Form 1099-DA reporting has increased the amount of digital-asset information sent to taxpayers and the IRS, but basis, wallet history and transactions outside a reporting broker may still require independent reconciliation.
Bitcoin tax compliance
The blockchain records transactions. It does not prepare the tax return for you.
Classification, basis and fair-market-value records are what turn transaction history into tax reporting.
Wallet + exchange reconciliation
Combine exchange exports, wallet addresses and transfer history so internal transfers are not accidentally treated as taxable dispositions and missing basis can be identified.
Capital gains + losses
Sales, exchanges and other dispositions of Bitcoin held as a capital asset generally require gain or loss reporting based on proceeds, basis and holding period.
IRS Digital Assets ↗Large-position tax planning
Model estimated taxes, realized gains and losses, charitable planning and diversification before a large Bitcoin sale or other liquidity event.
Tax Planning ↗Business + payment activity
Businesses receiving Bitcoin need records for the income recognized when the asset is received and for any later gain or loss when that Bitcoin is disposed of.
Outsourced Accounting ↗Bitcoin mining
Mining creates both operating income and a new digital-asset basis trail.
Bitcoin mining adds a business layer to digital-asset reporting. Mining rewards can create income when received, while the operation itself may involve electricity, equipment, software, facilities and other expenses that need to be captured in the books.
For business mining operations, the tax and accounting file should connect reward history, fair-market-value records, equipment and operating costs. When mined Bitcoin is later sold or exchanged, the basis created when the reward was recognized becomes part of the later gain or loss calculation.
Some miners operate across multiple states or countries. That can add entity, sourcing and international reporting questions beyond ordinary Bitcoin compliance. We can coordinate those issues with the firm’s foreign-business and tax expertise when the facts require it.
Foreign Business CPA ↗
Mining + operations
The reward and the later disposition are two different accounting events.
Good records connect when the Bitcoin was received, its value at that time, the operating expenses and what happened to the asset afterward.
Beyond Bitcoin
Many Bitcoin investors eventually create a broader Web3 reporting problem.
Other coins, NFTs, DAOs and international platforms can add different facts to the same tax file.
Some clients are Bitcoin-only. Others begin with Bitcoin and later add altcoins, staking, NFTs, tokenized assets or membership in DAOs. Each activity can create a different mix of capital transactions, ordinary income, creator or business revenue and entity-level reporting.
That is why the Bitcoin file should be built in a way that can scale. A consistent transaction history, documented basis method and complete wallet inventory make it easier to add new assets without rebuilding prior years from scratch.
The same principle applies when the portfolio becomes large enough to affect the client’s broader tax planning. Bitcoin may be the concentrated asset, but the tax decision should be coordinated with the client’s business, real estate, charitable, investment and estate-planning goals.
Bitcoin + cryptocurrency posts
Keep exploring digital-asset tax strategy.
Recent guidance from Bette on mining, IRS reporting and long-term crypto planning.
Demystifying Crypto Mining Taxation for Entrepreneurs
Tax reporting, deductions and recordkeeping for entrepreneurs operating cryptocurrency mining businesses.
Read the article ↗How the IRS Tracks Crypto Transactions
How digital-asset reporting reaches the IRS and why complete taxpayer records still matter.
Read the article ↗Tax Strategies for Long-Term Crypto Holders
Planning considerations for investors who have accumulated significant digital-asset gains over time.
Read the article ↗Frequently asked questions
Bitcoin tax questions that usually start with the transaction history.
General information only. Tax treatment depends on how Bitcoin was acquired, held, used and disposed of.
Clean reporting starts with the complete wallet picture.
Bring the exchanges, wallet addresses, prior crypto reports and the next transaction you are considering. We can identify the accounting and tax work that should happen before filing or selling.
Put 15 Minutes on the Calendar ↗