How accountants can help crypto-mining clients
Imagine walking into a CPA’s office ten years ago to ask for tax advice on this new digital currency called Bitcoin.
You tell the bewildered accountant that you use computers to “mine” this currency on the internet, but you’d like to know how to stay on the IRS’s good side while doing so. After turning you away, the people in the office will probably question your sanity for investing in meaningless internet money that will never be worth anything.
Today, you are the CPA, but you don’t turn away crypto mining clients — you want to help them manage their real business expenses and tax liabilities. But without much information, you must improvise most of your advice based on context clues.
That system has been good enough until now, but the days of crypto mining ignorance won’t last much longer. As mining continues to grow in popularity, accountants must learn better strategies to serve this growing niche.