Catching up with cryptocurrency
Cryptocurrency has quickly become a popular form of investment among individuals and corporations alike in recent years due to its high return potential, low barrier to entry, and decentralized nature.
However, navigating the tax implications of cryptocurrency transactions can be confusing and intimidating for some. This paper will provide guidance and answers to some of the most frequently asked questions related to cryptocurrency tax treatment.
In this white paper, we will discuss what you need to know about the tax treatment of cryptocurrencies, including:
- A timeline of guidance and rules from the IRS on the tax treatment of cryptocurrencies
- An overview of how nonfungible tokens (NFTs) are treated for tax purposes
- Information on ordinary income events related to cryptocurrencies
- Updated reporting rules for brokers with the passage of the Infrastructure Investment and Jobs Act
- A breakdown of state-level treatment of virtual currencies