Web3 CPA Firm for Bitcoin, Cryptocurrency, and DAOs
Investing in the Blockchain: Bitcoin, Cryptocurrencies, and NFTs for Investors and Businesses
Cryptocurrency and NFTs represent emerging asset classes. Web3 Technologies, including Blockchain, offer intriguing new infrastructure options that are reshaping web development. Investors delving into Bitcoin and Cryptocurrencies have faced a rapid learning curve on various compliance issues. Our journey with these financial instruments began in 2014, marking our early commitment as a Bitcoin CPA.
Understanding compliance concerns is straightforward and doesn’t necessarily require a dedicated cryptocurrency accountant. However, many CPAs lack experience in generating documents for financial instruments without regulated brokerage statements. As a pioneering Bitcoin Accountant, Bette developed proprietary systems for managing Schedule D filings long before the demand for dedicated cryptocurrency CPAs emerged.
Today, we are uniquely positioned to guide our clients through this dynamic realm of investment and wealth-building.
Compliance for All Cryptocurrencies
We Can Help Regardless of Your Trading Strategy!
Major marketplaces offer convenient tools and APIs for faster integration, but rest assured, we’re equipped to cater to your needs, whether you use mainstream wallets or prefer to safeguard your coins in cold storage. Collaboratively, we will devise tracking and reporting strategies that ensure full compliance with both state and Federal reporting requirements.
While it’s evident that being on a mainstream platform can reduce your compliance costs, we firmly believe that the potential for substantial gains should not be sacrificed for the sake of minor savings come tax time. If your strategy necessitates customized tracking and reporting, our cryptocurrency CPA firm is ready to establish the requisite systems.
Our expert cryptocurrency accountants possess the expertise to manage your records effectively across all platforms.
NFTs and Other Instruments
New and Novel Securities
NFTs, short for non-fungible tokens, represent an innovative asset class within the realm of Web3. While NFTs initially gained prominence for their association with JPEG images, their underlying technology introduces a novel and potent approach to the transfer of digital rights. The art community has readily embraced NFTs as a solution to ownership and scarcity challenges presented by the era of perfect digital replication.
However, the landscape is evolving, with the emergence of real-world asset-backed NFTs and real estate tokenization via NFTs, among other blockchain security assets, challenging the status quo. Those engaged in NFT trading may encounter compliance matters, ranging from straightforward to intricate. Meanwhile, individuals involved in the creation of NFTs should also consider the potential tax implications of this new revenue stream.
DAOs – Decentralized Autonomous Organizations
Compliance Issues for New Legal Structures
The internet and the rise of new technologies have led to a transformation of traditional business models. Established structures such as corporations, dating back to the 1600s, and limited liability companies (LLCs), introduced in 1977, may seem out of place in today’s world of international business, where ownership can change hands instantly.
The concept of the DAO (Decentralized Autonomous Organization) challenges existing legal frameworks for managing autonomous organizations without a central physical location for tax authorities to assert jurisdiction. The notion of ‘nexus,’ or the location where business activities occur, raises interesting questions about how these new DAOs will be regulated and taxed.
For those operating DAOs from within the United States, thoughtful consideration is crucial regarding their approach to the IRS and state treasury departments to ensure compliance.
Bitcoin and Cryptocurrencies to Traditional Assets
Wealth Building Techniques for All Investors
Most of our cryptocurrency investors have a diversified portfolio, but others stumbled into an opportunity and are looking to diversify. Whether you are realizing millions in capital gains to deploy in real estate, stocks, and bonds, or simply have crypto as part of your larger wealth strategy, we are here for your compliance and financial needs. We work with you and your financial planners to look at finances holistically, managing your full financial picture and making sure that you are utilized the right financial instruments to hit your goals.
Wealth Building for Entrepreneurs and Investors
Multigenerational Wealth from Cryptocurrency
Those that have established large amounts of wealth quickly are concerned with how to manage it. Our expertise is helping business owners build their wealth by creating more income generating assets. We work with a variety of financial advisors that can help you execute a variety of tax and wealth building strategies. Each client is different, and there is no cookie-cutter solution to tax and wealth for high networth individuals. We’ll help you comply with the law, pay the minimal but required taxes, and then use your wealth to create a legacy that can outlast you.
Recent Cryptocurrency Accountant Posts
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Tax Strategies for Long-Term Crypto Holders
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Capital Gains Made Easy for Crypto!
Learn how to navigate capital gains tax in cryptocurrency, including calculations, reporting, and strategies to minimize liabilities.
Web3 CPA Firm for Bitcoin, Cryptocurrency, NFTs, and DAOs FAQs
What does a Web3 CPA firm do for crypto investors and founders?
We handle crypto tax compliance (Form 8949/Schedule D), cost-basis tracking, NFT creator income, staking/yield reporting, DeFi activity reconciliation, DAO structure planning, multi-exchange wallet tracking, and proactive tax strategy.
How are Bitcoin and cryptocurrencies taxed in the U.S.?
Generally, crypto is treated as property. Selling, swapping, or spending crypto can create capital gains or losses; getting paid in crypto is ordinary income. We classify each transaction correctly and net gains/losses at year-end.
Do I owe taxes when I swap one coin for another?
Usually yes. Trading BTC→ETH (or any coin-to-coin swap) is a taxable disposition at fair market value. We pull prices at the time of each swap and calculate gain/loss per lot.
How are NFTs taxed for creators and for buyers/sellers?
Creators typically recognize ordinary income when they mint/sell, plus possible self-employment tax; later sales can create capital gains. Collectors owe capital gains/losses when selling or swapping NFTs. We also address gas fees and royalties.
How do staking, yield farming, and interest rewards get reported?
Rewards are usually ordinary income when received, then create new lots with their own basis for future gains/losses. We map on-chain rewards to wallets and produce support for your return.
What records do I need to keep for crypto taxes?
Wallet addresses, exchange statements, API exports/CSV, transaction hashes, timestamps, prices at execution, fees/gas, and notes on transfers vs. disposals. We can reconstruct history if data is messy or incomplete.
Can you fix past years if my prior CPA didn’t understand crypto?
Yes. We rebuild cost basis, match transfers, correct character (capital vs. ordinary), amend returns when beneficial, and prepare a clean audit trail that ties to chain/exchange data.
Do wash sale rules apply to crypto?
Historically, federal wash sale rules have applied to “securities.” Many practitioners treat most crypto as outside those rules, but regulations can evolve. We optimize harvesting strategies under current guidance and update if laws change.
How are airdrops, forks, and token incentives treated?
They can create ordinary income when you have dominion and control, and later dispositions can be capital gains/losses. We document timing, valuation, and basis per event.
What if I use DeFi protocols, bridges, or liquidity pools?
Each step—deposit, withdrawal, LP token mint/burn, rewards—may have tax effects. We decode smart-contract activity, classify wrappers correctly, and avoid double-counting fees and transfers.
Do I need a separate crypto accountant, or can any CPA do this?
Any licensed CPA can file returns, but Web3 activity requires specialized tooling and experience. We’ve supported crypto clients since 2014 and use on-chain and exchange data to produce defensible workpapers.
How do you help DAO founders and contributors with compliance?
We advise on entity selection or wrapper structures, contributor payments (fiat/crypto), information reporting, payroll/withholding where applicable, treasury controls, and U.S. federal/state filing obligations.
How is DAO income taxed for U.S. participants?
It depends on the structure (unincorporated association, LLC wrapper, foundation, etc.) and each participant’s facts. We determine whether income is ordinary vs. capital, source it by jurisdiction, and plan quarterly estimates.
Can you work with cold storage and privacy-focused wallets?
Yes. You control your keys; we reconcile from public addresses and your exports. Where data is limited, we use defensible valuation methods and create a clear audit trail.
What about international exchanges and foreign reporting?
Cross-border platforms can trigger additional disclosures and state considerations. We review your facts and advise on any required foreign asset or information reporting and multi-state filing obligations.
Will you coordinate with my financial advisor or family office?
Absolutely. We integrate tax strategy with investment policy, cash-out plans, diversification to real estate/stocks/bonds, charitable gifting, and estate/trust planning for long-term wealth.
How do you price Web3 accounting and tax services?
Fixed, transparent monthly packages based on transaction volume/complexity: reconstruction, ongoing bookkeeping, monthly closes, and year-end tax filings. We’ll scope your wallets, exchanges, and DAO activity first.
How do we get started with your crypto CPA services?
Schedule a consult and share exchange APIs/CSVs, wallet addresses, and prior returns. We run a data health check, propose a cleanup and filing plan, then deliver reconciled reports and a compliant return.