Crypto Fund Tax
Crypto Fund Tax is part of Formidium's tax services group. We offer a full suite of tax services to solve any complexities and challenges in tax calculations, reporting, and filings for digital asset funds. We also offer our all-inclusive tax services to a vast network of managers and funds located globally, covering hedge and private funds investing in blockchain, mining, staking, NFTs, tokenization, and real estate.
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100+
DIGITAL ASSET FUNDS
350
CLIENTS
50+
TAX PROFESSIONALS
4
OFFICES GLOBALLY
New Solution Simplifies Tax Time For Crypto Funds
Crypto Fund Tax, a full suite of tax services, including tax allocations, reporting, and filings for funds invested in digital assets, is now available from Formidium, a global leader in providing third-party fund administration and back-office technology solutions...
Why Crypto Fund Tax ?
Crypto Fund Tax is part of Formidium's tax services group. We are a licensed CPA firm located in Downers Grove, IL serving over 350 clients for their tax reporting. Our experienced and qualified tax service team includes 50+ individuals to handle tax filings and reporting of schedule K-1s for your investors. We use our in-house technology platform to connect with exchanges/wallets to fetch, clean, and sanitize transactional data, calculate capital gains/losses using various methods, reconcile and process a high volume of data, and tax lot accounting.
Using our proprietary technology, Seamless Digital, our tax specialists provide you with industry-leading tax support coupled with the highest level of client service, because cutting-edge technology and high-touch client service are at the core of everything we do.
Services we offer
We provide comprehensive tax services across entity's entire lifecycle, as described below:
- Review of private placement memorandum tax section.
- Preparation of U.S. federal returns (1065, 1120, 1120-S), and state tax returns for all U.S. states, including composite tax returns, handling state filing fees, state tax withholdings, etc.
- Preparation of all supporting and additional tax forms that are filed along with federal and state tax returns. (Form 8949, 4797, 8825, 8990, 8082, 8832-B, etc.)
- Preparation of federal and state schedule K-1 reporting for investors.
- Partner tax allocations using appropriate allocation methods.
- Preparation and compliance with foreign investments. (Form 5471, 8865)
- U.S. tax reporting and compliance for Non-U.S. investors. (Form 1042, 8804, 8805)
- Preparation of international reporting tax forms K-2 and K-3.
- Preparation of other miscellaneous forms like Form 1099s, name change, address change forms, and many more.
- Preparation of responses to IRS and state revenue notices.
- Offering and organizing cost amortization, book-to-tax reconciliations, maintaining tax basis for investor's capital and fund's investment, and handling the assignment of interest from one investor to another.
- Tax lot level capital gain/loss calculations, wash sales calculation.
- Carried interest reporting under IRC 1061.
We provide comprehensive tax services across entity's entire lifecycle, as described below:
- All the items covered for U.S. Funds/Entities.
- Preparation of foreign partnerships, blocking corporations' tax returns, including foreign master-feeder structures.
- Analysis of the entity's structure to determine its applicable U.S. tax filings. (Passive foreign investment company vs. controlled foreign corporation determination)
- Filing applicable tax forms for Non-U.S. funds/entities, including Form 8621, 5472 reporting.
- Preparation of K-1 equivalent forms for Non-U.S. entity/fund's investors, including PFIC/CFC reporting.
We provide specialized tax services tailored to the requirements of crypto funds including analysis and tax adjustments for:
- Contribution-in-kind and distribution-in-kind.
- Wallet-to-wallet transfers.
- Ordinary gain on staking and lending.
- Receiving crypto from an airdrop, rewards, and mining income.
- Crypto interest earnings from Defi lending.
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Crypto earned from liquidity pools and interest-bearing
accounts etc. - Trading in coins, tokens, NFT, SAFE/SAFTs.
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