How can I deduct tax preparation fees related to cryptocurrency transactions?

3 answers

• Dec 28, 2021 · 3 years ago
  Yes, you can deduct tax preparation fees related to cryptocurrency transactions on your tax return. According to the IRS, tax preparation fees are generally deductible as miscellaneous itemized deductions. However, it's important to note that miscellaneous itemized deductions are subject to a 2% of adjusted gross income (AGI) floor, which means you can only deduct the amount that exceeds 2% of your AGI. Additionally, you must itemize your deductions instead of taking the standard deduction in order to claim tax preparation fees. Make sure to keep detailed records of your cryptocurrency transactions and the associated tax preparation fees to support your deduction claim.
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• Dec 28, 2021 · 3 years ago
  Absolutely! You can deduct tax preparation fees related to cryptocurrency transactions. The IRS allows you to deduct tax preparation fees as miscellaneous itemized deductions. However, keep in mind that these deductions are subject to a 2% of AGI floor, meaning you can only deduct the amount that exceeds 2% of your AGI. To claim these deductions, you need to itemize your deductions instead of taking the standard deduction. Keep track of your cryptocurrency transactions and the fees you paid for tax preparation to support your deduction claim.
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• Dec 28, 2021 · 3 years ago
  Yes, tax preparation fees related to cryptocurrency transactions can be deducted on your tax return. The IRS considers these fees as miscellaneous itemized deductions. However, it's important to note that miscellaneous itemized deductions are subject to a 2% of AGI floor, meaning you can only deduct the amount that exceeds 2% of your AGI. To claim these deductions, you need to itemize your deductions instead of taking the standard deduction. Make sure to keep proper documentation of your cryptocurrency transactions and the associated tax preparation fees to support your deduction claim.
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