A Conversation with Edward Schulte and Hai Tang from Andersen Tax

Edward Schulte and Hai Tang join the yWhales team to discuss cryptocurrency taxation. Being an extremely young space set to revolutionize all things finance, banking, and beyond - there are many legal implications of investing in crypto. It can be challenging to keep up with the constant regulatory changes in the space. Throughout the conversation, Edward and Hai provide some guidance on how to manage your crypto assets and liabilities. They also share best practices for working with a crypto fund manager. 

 

There are very few qualified financial professionals in this space, including those who work in regulatory bodies, so tune in for some valuable education.

 

About Guest

 

Edward Schulte and Hai Tang are Managing Directors at Andersen Tax. Andersen Tax is one of the biggest names in TradFi and is currently expanding to the DeFi space. 

 

Edward Schulte is a Managing Director in the San Francisco office of Andersen Tax. He is part of the Alternative Investment Funds practice. He provides tax consulting and tax compliance services to hedge, venture capital, and mutual funds. Prior to joining the Andersen team, he was a Partner at KPMG in the alternative investments practice. 

 

Hai Tang is a Managing Director at Anderson Tax. He is also part of the Alternative Investment Funds practice.  He specializes in federal and international taxation and serves private equity, venture capital, and hedge fund clients. Before Andersen, Hai was a Tax Director at PwC working with alternative investment fund clients.

You’ll learn about:

 

• The increasing scrutiny around cryptocurrency assets.
• Best practices for managing your crypto assets and liabilities.  
• What auditors know about the nuances of cryptocurrency.
• Tools needed to track cryptocurrency assets and liabilities.  
• How the Build Back Better framework may impact the crypto-verse. 
• What working with a crypto fund manager is like. 
• How staking income and NFTs are taxed.

 

Resources: 

Connect with YWhales: Website | BitClout | Twitter

 

Connect with Edward Schulte: Linkedin | Profile at Andersen Tax

Connect with Hai Tang: LinkedIn | Profile at Andersen Tax

 

Timestamps

 

[01:42] Episode overview: Cryptocurrency tax exposure

[02:28] Who is Edward Schulte (Anderson Tax)? 

[03:02] Who is Hai Tang (Anderson Tax)?

[04:27] Mike’s crypto exposure

[06:16] Types of clients that work with Anderson Tax

[09:54] Keeping up with volatile and changing regulations

[13:09] Do clients ask for crypto advice?

[15:09] How experienced are fund management teams looking to get into cryptocurrency? 

[17:51] Where to set up crypto investment vehicles. 

[21:08] Best practices for starting a crypto fund. 

[23:53] What do auditors know about cryptocurrency?

[28:27] Tracking tools. 

[33:03] Who is lobbying for the cryptocurrency industry?

[37:30] Are NFTs collectibles or a utility?

[40:48] How do crypto fund managers charge for compensation?

[44:39] How should a client prepare for a meeting with a crypto fund manager?  

[47:26] Dealing with custody. 

[49:31] What to avoid when investing in a fund. 

[53:25] Informing clients on changes in crypto taxation. 

[54:46] How Anderson Tax is expanding into DeFi. 

[59:05] Taxing staking income. 

[01:03:55] How staking should be taxed (ideally). 

[01:05:09] Does the government want to see better blockchain account systems? 

[01:07:02] The future of the banking industry. 

[01:07:38] How to connect with Edward Schulte, Hai Tang, and Anderson Tax.

 

DISCLAIMER: yWhales is not affiliated with YPO but at this time only allow for YPO, YPO Gold, and YNG members due to privacy & confidentiality. Support and production for today’s episode was done by Truth Work Media. Nothing in the podcast constitutes professional and/or financial advice, nor does any information on the podcast constitute a comprehensive or complete statement of the matters discussed or the law relating thereto.