What are the tax implications of deducting tax prep fees on my digital currency transactions?

1 answers

• Kevin BeardsleeJan 01, 2023 · 3 years ago
  At BYDFi, we understand the importance of tax implications when it comes to deducting tax prep fees on your digital currency transactions. While deducting these fees can potentially lower your tax liability, it's crucial to ensure that you're following the IRS guidelines. Deductible tax prep fees must be directly related to the production of taxable income and exceed a certain threshold. It's also important to note that deducting these fees may increase the likelihood of an audit. To ensure compliance and maximize your deductions, we recommend consulting with a tax professional who specializes in digital currency transactions.
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