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
We’re seeing an increasing variety of digital tokens that represent rights to, interests in, or ownership of an entity. We’re also seeing digital tokens that represent debt obligations of corporations. These tokens can be...more
The taxation of non-fungible tokens (NFTs) is still something of a mystery. All we have to go on is the IRS definition of digital assets and Notice 2023-27. The IRS digital asset definition includes NFTs, stating that they...more
Until very recently, the IRS has been silent about the tax treatment of non-fungible tokens (NFTs). An almost unknown market in 2020, NFTs skyrocketed to prominence in 2021 with a capitalization at the beginning of 2021 of...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