Cryptocurrency as an investment is relatively new, especially compared to other investment vehicles such as stocks and bonds. Because of this, there is a lot of confusion and a lack of guidance around how taxation applies to cryptocurrency-based investments. This week on Grow Money Business, we are joined by Micah Fraim, a Certified Public Accountant who specializes in crypto taxes. Throughout the episode, we take a dive deep into the tax aspect of cryptocurrencies, NFTs, and other blockchain-based assets.
Show Notes
[02:01] Getting to Know Micah – We start the conversation with a brief look at Micah’s career and how he got into his current line of work in taxation for cryptocurrency.
[04:12] Taxation for Crypto – Micah dives into the limitations of our current tax system in relation to cryptocurrency and virtual assets, as well as some of the attempts that have been taken to introduce legislation related to cryptocurrencies.
[10:45] Tax Basics – Grant and Micah discuss some of the most basic tax concepts related to investments and how they apply to cryptocurrencies.
[15:47] Opportunities – Micah shares some of the opportunities that arise along with a crypto bear market.
[25:31] NFTs – Micah explains the current tax code’s application to NFTs and how the wide range of use cases available for NFTs will call for more advanced tax rules.
[30:44] Play-to-earn Games – Micah shares his thoughts on how games are introducing new in-game economies and how they are connected to crypto investments.
[35:38] Tracking Crypto Transactions – Micah discusses how to track crypto transactions across multiple trading platforms for taxation purposes.
[42:06] Audit Risks – Micah dives into the risks that could arise from irregularities in crypto transactions that are reported to the IRS.
[44:41] Crypto as Payments – Grant and Micah discuss some important considerations for business owners who are accepting payments in cryptocurrencies and how it may affect business operations.
[50:00] Future of Crypto – Micah shares his thoughts on how cryptocurrency projects may evolve in the near future, as well as how the regulations may be adjusted to match the innovations in the crypto space.
Resources
Connect with Micah
Websites:
cryptotaxcpa.com
www.fraimcpa.com
micahfraim.com
Micah’s Books
Decrypting Crypto Taxes: The Complete Guide to Cryptocurrency and NFT Taxation
amazon.com/Decrypting-Crypto-Taxes-Complete-Cryptocurrency-ebook/dp/B0B88Y42JF
The Little Big Small Business Book
amazon.com/Little-Big-Small-Business-Book-ebook/dp/B00ZE5YWFK