In November 2023, almost 11,000 cryptocurrencies and digital tokens were listed on CoinMarketCaps.com. In addition, tens of thousands of non-fungible tokens (NFTs) are sold daily on various crypto exchanges and NFT platforms....more
12/27/2023
/ Abandoned Property ,
Capital Losses ,
Cryptoassets ,
Cryptocurrency ,
Digital Assets ,
Non-Fungible Tokens (NFTs) ,
Ponzi Scheme ,
Securities ,
Tax Deductions ,
Tax Planning ,
Theft ,
Trading Platforms
Taxpayers can receive significant tax benefits when donating cryptocurrency and other appreciated digital assets to a charity. This article looks at some key considerations to keep in mind as you consider all your options....more
Charities should address several issues when considering whether to accept donations of digital assets, defined to include cryptocurrency, stablecoins, and non-fungible tokens (NFTs)....more
11/15/2023
/ Capital Assets ,
Charitable Donations ,
Cryptoassets ,
Cryptocurrency ,
Digital Assets ,
Donations ,
Donors ,
Gifts ,
Internal Revenue Code (IRC) ,
IRS ,
Non-Fungible Tokens (NFTs) ,
Stablecoins
Taxpayers can take a tax deduction with respect to “theft” losses that result from an illegal “taking of property” done with criminal intent. Among various other types of criminal activities, fraud is treated as theft under...more
10/11/2023
/ Cryptoassets ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Extortion ,
Fraud ,
Internal Revenue Code (IRC) ,
IRS ,
Non-Fungible Tokens (NFTs) ,
Phishing Scams ,
Ponzi Scheme ,
Ransomware ,
Safe Harbors ,
Scams ,
Tax Deductions ,
Tax Losses ,
Theft
Introduction Until Notice 2023-27, the Internal Revenue Service (IRS) was silent about the tax treatment of nonfungible tokens (NFTs). When the IRS turned to NFTs, it focused on one aspect of NFTs: whether certain NFTs should...more
In December 2022, I was quoted in an article in “Tax Notes” by Lee Sheppard to the effect that the wash sales rule in Internal Revenue Code (Code) Section 1091(a) (losses from wash sales of stock or securities) doesn’t apply...more
A taxpayer’s investment losses, including losses on digital assets such as cryptocurrencies and non-fungible tokens (NFTs), are not deductible unless the taxpayer’s activities rise to the level of “investment activities” or...more
You need to consider how you’ll report digital asset transactions on your 2022 tax returns. Tax reporting requirements for digital assets have changed yearly since 2019, when the IRS first added a question about crypto to IRS...more
3/21/2023
/ Bitcoin ,
Cryptocurrency ,
Digital Assets ,
Financial Planning ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Investment Products ,
IRS ,
Non-Fungible Tokens (NFTs) ,
Stablecoins ,
Tax Liability ,
Tax Planning ,
Virtual Currency
Explosive growth in digital assets has left investors with real questions about how to donate cryptocurrency and non-fungible tokens. That the tax bills are high enough to generate this interest is clear evidence of the gains...more
3/6/2023
/ 501(c)(3) ,
Charitable Donations ,
Cryptocurrency ,
Digital Assets ,
Donor-Advised Funds (DAFs) ,
Internal Revenue Code (IRC) ,
IRS ,
Non-Fungible Tokens (NFTs) ,
Tax Deductions ,
Tax Incentives ,
Tax Planning