Nik Fahrer, CPA

Thank you to the Denver Estate Planning Council for hosting Matt McClintock of Bespoke Group and Nik Fahrer of Forvis Mazars US for a discussion on “Wealth Planning for Bitcoin.” A special thank you to Stephanie Hill for organizing the event. We appreciated the opportunity to connect with the DEPC community and contribute to the growing conversation around how to help clients structure Bitcoin wealth. A shoutout as well to the DEPC members who brought thoughtful questions to the discussion. @mcclintock_m @nrfahrer @ForvisMazarsUS

On Thursday, March 5, Matt McClintock (Bespoke Group) and Nik Fahrer, CPA (Forvis Mazars US) will be presenting "Wealth Planning for Bitcoin" at the Denver Estate Planning Council seminar. This session will cover considerations for integrating Bitcoin into an estate plan with topics including: - Crypto Basics - Bitcoin vs. Other Cryptocurrencies - Ways to Own Crypto - Overview of Tax Treatment - Risks of "HODLing" - Securing and Transferring Digital Assets During Life - Advanced Strategies Using LLCs & Trusts denverestateplanningcouncil.org/events/event/2… @mcclintock_m @nrfahrer @ForvisMazarsUS

@TheCryptoCPA And the agents might even be considered PDAPs that have to report these transactions on a 1099-DA

You will have to report all these transactions on your taxes under 1099-DA rules that went into effect last year.

@TheCryptoCPA Taxpayers also don’t receive basis in those rewards when they are later sold or exchanged.

Rewards received from crypto debit/credit cards are not taxable upon receipt. This is because cash/crypto back is considered not income. It's an adjustment to the purchase price. Market value at the time of receipt = your cost basis. When you later sell them, you will have a capital gain or a loss. - FAQ-

Trends and downstream effects @nrfahrer is seeing at @ForvisMazarsUS as regulations have eased constraints.

Market Cap w/ Forvis Mazars In this episode we talk with @nrfahrer from @ForvisMazarsUS and @jeffwangolf from @ForvisMazarsGrp, to explore how a global audit and advisory firm approaches digital assets. We discuss the state of crypto assurance, stablecoin transparency, regulatory readiness and the growing institutional demand for risk and controls in blockchain. A deep look at how traditional professional standards are meeting the next wave of digital asset innovation. Chapters 03:01 Understanding Forvis Mazars and Their Focus on Digital Assets 06:13 Personal Journeys into Blockchain and Digital Assets 09:09 Services Offered by Forvis Mazars in the Crypto Space 11:57 Navigating Compliance and Regulatory Challenges 14:50 The Role of Trust and Integrity in Client Relationships 18:10 Trends in the Crypto and Traditional Finance Intersection 20:59 Challenges Faced by Crypto Founders 23:58 Future Trends and Predictions for the Crypto Industry 26:49 Advice for Crypto Founders Moving Forward 29:59 Conclusion and Future Directions for Forvis Mazars

@3orovik They only removed the DeFi regs. Custodial broker regs are still in place.

THE MOST BULLISH NEWS Form 1099-DA was designed to require crypto brokers, including DeFi platforms, to report users’ digital asset transactions to the IRS for tax compliance NOW IT IS GONE!!! LETS GO!!!

Dad… how was the 2025 Pacers playoff run?

Hali gave us everything. The team gave us everything. Fought to the very end. Epitome of what you ask for as a fan. I’m grateful for some of the most fun sports months of my life. A lifetime of memories shared with family & friends. I’ll love this team forever. #YesCers

Our newest episode of From the Vault, the BitGo podcast is live! BitGo's Director of Fintech Sales, Nathan Stump sat down with @nrfahrer of @ForvisMazarsUS and Jessalyn Dean of @Ledgiblecrypto for a no-fluff dive into what crypto tax reporting really looks like. From 1099s to DeFi to staking income, and the strategies institutions need to stay ahead. 👀

Less than 24 hours until the NBA Finals begin. Indiana, this is our time. Narrated by Mark Boyle.

If you missed last week's IRS Updates for Digital Assets: Key Regulatory Changes for 2025, don't worry! The recording is now available! Tune in to hear about the latest IRS regulations shaping the digital asset landscape from expert panelists VP of Tax Information Reporting Jessalyn Dean of WSBA Member Firm @Ledgiblecrypto and Director @nrfahrer of WSBA Member Firm @ForvisMazarsUS. youtube.com/watch?v=n49xOK… #WSBA #WSBAWebinar #WSBAMemberFirm #Blockchain #BlockchainLaw #BlockchainRegulation #Crypto #CryptoLaw #CryptoRegulation #Law #Regulation #DigitalAssets #CryptoAssets #IRS #Accounting #FutureOfCrypto

@rledbetterCPA I was hoping you’d point out the actual reason - Article 1 Section 8 of the US constitution gives Congress the power to levy taxes, not the executive branch.

The President has vowed to abolish the income tax. Here's why that can't happen:

Bye, bye SAB 121! It's not been fun: SEC.gov | Staff Accounting Bulletin No. 122

@tomyoungjr @coinbase No guidance has been provided by the IRS on if BTC > WBTC is a taxable event. There are arguments that it is not a taxable event.

FOLLOW UP: my friend Terrence points out that the conversion from Bitcoin to a wrapped Bitcoin product likely incurs a taxable event. If that is the case, then this structure is a FAIL. We could see new tax and regulatory treatments for Bitcoin. If and when that happens, then this structure could work, but the better structure is multisig escrow structure. @ProofOfMoney

Quick review of @coinbase BTC Loan Product. 1- Interest is about 10% and floats. 2 - Interest compounds on the loan continuously 3 - No monthly payments just compounding obligation 4 - The structure is similar to Reverse Mortgage product I discussed last year 5 - no fixed term. 6 - must keep LTV below 60% (corrections additions welcome) Theoretically - you could pull living expenses into USDC and then transfer USDC to your @fold_app Fold Debit card and pay bills and cover living expenses. If Bitcoin price grows as expected this year, your LTV will decline each month if the APR stays around 10%. I suspect that this is the first of many products like this to come on the scene in 2025. Do your analysis and think about WHEN and IF you might do this. Personally - I want to see how this shakes out a bit -- but this is very exciting. Link to Reverse Mortgage Loan Model. docs.google.com/spreadsheets/d…

@nyoungdumb This did not delay the safe harbor

Remember how I said not to worry about the safe harbor thing? You’re welcome. Called it.

@BITVOLT These were not delayed. IRS provided relief to taxpayers wishing to use a method like HIFO or LIFO for 2025 transactions only.

I love how the IRS delayed the new Bitcoin tax reporting rules just two days after the supposed December 31st "deadline." Imagine all the people, including myself, who scrambled to ensure compliance. Must be a coincidence, of course!

18/18 - However, DeFi brokers will have to weigh the cost of implementing compliance teams and tools necessary to comply with these new reporting requirements. If the cost outweighs the benefit, you might see DeFi apps geo-block U.S. customers.

17/18 - In my opinion, this new information reporting regime will not necessarily create undue burden on taxpayers that are already making a good faith effort to report their sales.

1/18 - 12/27/2024, the IRS released 115 pages of final broker reporting regs for DeFi (non-custodial) transactions. In general, this will go into effect for transactions beginning on January 1, 2027. Here’s what was included and what it means for you: What does the rule say?