Tag: cryptocurrency
IRS issues new guidance on cryptocurrency and digital assets
The IRS recently made several updates related to cryptocurrency and digital asset transactions which investors and digital asset owners should be aware of: Revenue Ruling 2023-14 There has been debate for some time about the treatment of staking activities. Some...
Appraisal requirement may cause some to rethink charitable donation of cryptocurrency
In January 2023, the IRS announced that taxpayers will not be eligible for a charitable contribution deduction if they donate digital assets valued over $5,000 without obtaining a qualified appraisal. Despite digital assets potentially having a value listed on exchanges...
Cryptocurrency Tax Losses May Be Subject to a $3,000 Cap
Dramatic losses in digital wallets should be accounted for on tax returns. However, even the IRS appears unsure of how to treat these losses for tax purposes, although they have given some limited guidance on the matter. The standard rule...
“Staked” cryptocurrency value may no longer be taxed as income
A recent settlement offered to taxpayers who filed a suit against the IRS may indicate a change in how staked cryptocurrencies are taxed. Previously, staking income was treated similarly to interest income. Many crypto exchanges were handling it like that...
IRS reminds taxpayers to report virtual currency transactions
The IRS recently reminded taxpayers that income from virtual currency transactions is reportable on their income tax returns just like transactions in any other property. The IRS has issued guidance in IRS Notice 2014-21 for use by taxpayers and their...