Tag: cryptocurrency

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 exchange...

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 it...

Reporting guidelines for cryptocurrency, digital assets change under Infrastructure Bill

Although not slated to take effect until January 2024, cryptocurrency investors and other digital asset holders should be aware of new reporting requirements spelled out in the recently signed $1.2 trillion Infrastructure Investment and Jobs Act: Form 1099-B Reporting Requirements: Cryptocurrency...

Cryptocurrency owners may owe back-taxes

The Internal Revenue Service is warning more than 10,000 holders of cryptocurrency that they may be subject to penalties for skirting taxes on their virtual investments. The IRS has begun sending letters to taxpayers who potentially failed to report income...

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...

Income tax ramifications of Bitcoin, Ethereum, Ripple Litecoin and other cryptocurrencies

Cryptocurrency is an electronic medium of exchange; Bitcoin, Ethereum, Ripple, and Litecoin have become some of the most widely circulated digital currencies, and the rapid growth of the market has invited both experienced HODLers and new speculators to invest in...