Tag: crypto

Appraisal requirement may cause some to rethink charitable donation of cryptocurrency

  • July 5, 2023
  • ShindelRock

  In January 2023, the IRS advised that taxpayers will be denied a charitable contribution deduction for a donation of digital assets in excess of $5,000 without a qualified appraisal. While digital assets may have a value listed on an...

IRS requires a qualified appraisal to deduct charitable contribution of cryptocurrency

  • January 26, 2023
  • ShindelRock

Generally, IRC Sec. 170(f) requires a taxpayer to satisfy certain substantiation requirements to claim a charitable contribution deduction. Recently, the IRS disallowed a taxpayer's charitable contribution deduction for a donation of more than $5,000 in cryptocurrency because she failed to...

Cryptocurrency Tax Losses May Be Subject to a $3,000 Cap

The cryptocurrency market has been on a wild ride this year.  For some, that's meant dramatic losses in their digital wallets that should be accounted for on tax returns.  However, even the IRS appears unsure of how to treat these...

“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 thought of, and treated similar to, interest income. Many crypto exchanges were handling...

IRS reminds taxpayers to report virtual currency transactions

  • April 11, 2018
  • Steve Wisinski, CPA, MAFF

The IRS recently reminded taxpayers that income from virtual currency transactions is reportable on their income tax returns. Virtual currency transactions are taxable by law just like transactions in any other property. The IRS has issued guidance in IRS Notice...