Dennis Wohlfarth from Accointing on Crypto Taxes Strategy for Individuals
What We Discuss With Dennis Wohlfarth
Right now is that time of the year when the taxman comes knocking on the door. If you’re residing in a country where crypto tax laws are not, let’s say, generous, having a tax strategy is just as important as an investment strategy.
If you’re like most people, you will agree that crypto tax filing is a painful exercise. You have to compile your trading transactions from multiple exchanges, wallets and be cognizant with the relevant tax laws.
My guest, Dennis Wohlfarth, also faced the same agony years ago, but unlike most of us, he decided to take matters into his own hands.
Dennis is the CEO and Founder of Accointing, a tax optimizing platform, which allows you to track your crypto portfolio in real time and file your taxes, whether they are in the form of trading or income.
In this episode, you will learn;
- What gives rise to a taxable event trading crypto;
- Strategies to optimize and minimize your tax liability;
- Why using a crypto tax tracking software will make your life easy;
- How crypto as a source of income is taxed and much more.
Shownotes
- Dennis shares the story of the troubles compiling crypto trades for filing purposes, and how that led to founding Accointing [2:32]
- What constitutes a taxable event in crypto investment trading [4:34]
- Is a payment made in crypto create a taxable event [6:20]
- How Accointing helps taxpayers to aggregate all cost basis to calculate capital gains/losses [9:18]
- How does Accointing differentiate between a user’s internal wallet and external wallet [12:14]
- What is the importance of the cost basis for calculating tax gains/losses (FIFO, LIFO, etc) [14:52]
- What is Tax Loss Harvesting, and how can a tax payer optimize their tax liability under this strategy [18:07]
- Walkthrough of how to register and file taxes in Accointing [21:47]
- Does Accointing calculate the tax liability for certain jurisdictions (Eg. US, Germany, Austria, UK, Australia, Switzerland) [25:14]
- Other strategies taxpayers can use to minimize their tax bill [27:01]
- What are the implications of earning income in crypto, and is it taxed just like fiat income [31:09]
- For income tax, do you have to convert the crypto to fiat at time of receipt or time of filing [32:46]
- Does Accointing allow to import income from staking and yield farming, and are these taxable [33:35]
- When receiving income in tokens, is it required to convert them to fiat for income tax filing? [35:57]
- As the rate of crypto adoption grows, how does Dennis foresee the tax landscape evolving [38:37]
- What are the biggest challenges faced by Accointing (maybe not everyone wants to file crypto taxes) [41:36]
- To people who leverage on the pseudonymous nature of crypto to get away with taxes, what is the long term implication [43:44]
- In terms of career opportunities, what are some skills and knowledge lacking today? [46:32]
- Dennis shares his closing thoughts, and why paying taxes are an important part of the development of the crypto ecosystem [47:52]
