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Advising Business Owners During Volatile Economic Times

November 6, 2022 by David Moseman CPA

worried businessman

The landscape of accounting and taxation has been very dynamic over the past several years. Tax reform, the adoption of digital currency, pandemic-induced debt, supply chain disruptions and workforce changes are layered upon an already complex and regulated industry.

The purpose of tax planning before you are in the throes of tax season is to minimize your tax liability. At CironeFriedberg, our experienced CPAs take a holistic view of the impact of new and existing tax programs and regulations that can be implemented to optimize your tax situation.

CironeFriedberg clients are C corporations, S corporations, Limited Liability Companies (LLCs), partnerships, and sole proprietors across various industries. We assist business clients to structure transactions in the most advantageous tax manner to help minimize the tax impact and take advantage of tax benefits.

Tony Cirone CPA
Tony Cirone, CPA

“Our business clients in all industries are working to improve product and service delivery while controlling costs in a very challenging economic environment. We listen to them and approach each client as a having a unique set of needs and challenges. Our team collaborates in ways to find and implement creative approaches to deliver the best solutions possible.”

– Tony Cirone, CPA

Business Mergers, Acquisitions, Sales, and Expansion

Business owners and family businesses rely on us to advise them on business structure, acquisitions, sale of a business, and compensation plans for management and owners. When faced with growing through acquisition or transferring a business to family members, they seek our advice. They know CironeFriedberg has their back.

At CironeFriedberg our Certified Valuation Analysts offer specialized knowledge and expertise in valuations as required for purchase, sale, merger, gifting or tax election requirements. Our valuation professionals are trained in current professional standards and hold Certified Valuation Analyst (CVA) and Accredited in Business Valuation (ABV®) certifications.

Our unique expertise in Litigation involving shareholder and partner disputes, dissenting shareholder actions, and related expert testimony is also in high demand.

Continually Changing and Evolving Tax Laws

Our experienced tax CPAs stay up-to-date and informed on complex and constantly changing tax regulations. David Moseman, CPA, is one of the partners in charge of tax services at CironeFriedberg and oversees a team of experienced accounting professionals with excellent critical thinking skills.

Tax laws are complex and continually changing. Our CPAs specialize in Federal and state tax laws and regulations and are committed to delivering accurate and timely tax filings. At CironeFriedberg, we put our clients’ needs front and center. We listen. Our team has the technical expertise and experience required to ensure efficient tax compliance and effective tax planning for each client.

David Moseman CPA
David Moseman, CPA

“We are constantly expanding our knowledge to proactively meet our clients’ needs. There are new IRS regulations affecting many areas such as cryptocurrency and digital currency taxation. We stay on top of these changes and are continually expanding our expertise and capabilities to serve the needs of new clients including those stepping into the Cannabis industry.”

– David Moseman, CPA

Careful tax planning is critical for business success in today’s volatile economy. In a complex regulatory environment with global pressures and challenges beyond our control, strategic tax planning is necessary to achieve business success and preserve and grow wealth.

Filed Under: Business Taxes Tagged With: ABV, cannabis, compensation plans, cryptocurrency, CVA, digital currency, family business, tax planning, valuation

The Impact of Virtual Currency on Income Tax Reporting

October 1, 2022 by David Moseman CPA

bitcoin and digital currency coins

According to Insider Intelligence, in 2021, cryptocurrency accounted for $6.10 billion worth of transactions worldwide. That represents an increase of 177.3% over the year before. The transaction value is expected to surpass $16.16 billion in 2023 as more businesses accept digital currencies as forms of payment.

As the use of virtual currency explodes, the IRS is adapting tax forms to record taxes due for related transactions. As we enter the last quarter of the year, the IRS has started drafting the new tax return forms for 2022. While not final, we have seen some of the changes on Form 1040 from last year. One significant difference is the use of the phrase “digital assets” instead of “virtual currency.”

On the 2021 Form 1040, the question was asked “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?”

The draft 2022 Form 1040 asks, “At any time during 2022, did you: (a) receive (as a reward, award, or compensation); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.)”

In 2021, the IRS used the term “virtual currency” to describe various types of convertible virtual currency that are used as a medium of exchange, such as digital currency and cryptocurrency. Regardless of the label applied, if a particular asset has the characteristics of virtual currency, it is treated as virtual currency for Federal income tax purposes.

In 2022, changing the phrase “virtual currency” to “digital assets” indicates that the IRS seeks to include other forms of assets besides cryptocurrency, such as blockchain and nonfungible tokens (NFTs). However, even though the IRS is changing the phrase to “digital assets” for the 2022 tax forms, the IRS website is still continuing to use the phrase “virtual currency” at this time.

A more detailed definition of digital assets will likely be included in the 2022 Form 1040 Instructions, which have not yet been published. Also, the IRS may revise the draft 2022 Form 1040 prior to issuing the final version.

The purchase of digital currency is not necessarily taxable. However, once it is sold, you must report the gains or losses to the IRS on the required forms and pay the taxes associated with the transaction. The tax rates will depend on how long you owned it in addition to your income level and tax filing status. Transactions, like selling digital (virtual) currency or using it for purchases, are considered capital gains or losses for tax purposes.

For more information on this topic, read our article, Overview of Blockchain and Cryptocurrency.  

If you need assistance or have any questions on the information in this article, please call your CironeFriedberg professional. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Stamford) or email us at info@cironefriedberg.com.

Filed Under: Cryptocurrency Tagged With: bitcoin, blockchain, capital gains, cryptocurrency, digital assets, digital currency, IRS, taxes

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CironeFriedberg is an independently owned and operated member firm of CPAmerica, Inc., one of the largest associations of CPA firms in the United States. Through our affiliation, we have instant access to the expertise and resources of more than 2,800 professionals and more than 750 partners.

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CironeFriedberg provides services in Fairfield and New Haven Counties in CT and Dutchess, Putnam, and Westchester Counties in NY
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