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Cryptocurrency Certification and Services for Professionals

Tax Mitigation


A defensible legal opinion can make all the difference. In an uncertain regulatory environment, tax payers and professionals alike are left to interpret some aspects of tax exposure. Crypto comes in all shapes and sizes and the understanding the underlying technology can be a key component to understanding a transaction's tax treatment. Clients' risk tolerance also plays a role in determining the appropriate course of action. Having a team of experienced professionals is a necessity when navigating complex tax scenarios. Whether your client is seeking legal support for their tax treatment or strategies for offsetting their taxable income, we can help.


Leveraging charitable contributions is tax reduction strategy that has long been employed by tax payers to offset their Income significantly. In many cases, clients can use arbitrage to essentially buy-down their tax bill. By purchasing undervalued assets and donating them to registered 501(c)3 non-profit organizations, donors can often enjoy an income reduction 3-5x higher than their original investment. Your clients may be able to reduce their taxable income by as much as 30%. As a general guideline, tax payers typically need to have an AGI in excess of $500,000 but some strategies allow for less.


Loss Harvesting is another strategy that is especially effective with cryptocurrency. Cryptocurrency is currently treated as property for tax purposes which allows investors to sell their coin at a loss and buy it back again to retain their long-term position. Harvesting losing coins can help offset the taxable gains from clients' winning coins and up to $3,000 of their taxable income each year, and unused losses carry forward to future years. We can also help clients with unsellable coins harvest losses by selling to private parties so they can harvest losses on delisted or worthless coins.

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