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NFTs will be split into pieces for tax purposes
The IRS recently issued Notice 2023-27: Treatment of certain nonfungible tokens as collectibles. This is the beginning of IRS guidance on NFT Tax. The best part is they are looking for public comments and I was impressed with the questions they...
Some losses are more valuable than others.
We're still fresh off of the original US individual tax deadline. It's still a good time to discuss crypto taxes since crypto tax season essentially never ends. In addition, the AICPA recently issued an IRS comment letter regarding the treatment of...
You get an impossible task with more work
This week I already did the heavy lifting via my Coindesk Opinion piece. I'll also give you some other stuff below so read that first then click on the article link. Please read here 1099-DA Reporting Creates More Headaches for Taxpayers
MONSTER...
Getting your data before you can't
The Missing Transactions Dilemma is one of the most expensive crypto tax mistakes in the game. Most people don't realize it until they are deep in the realization of it.
In crypto there are two kinds of assets:
- Crypto assets (the obvious one)
- The data about the...
The nitty gritty of choosing a crypto tax pro
In Part I we examined the legacy approach and the anatomy of tax return preparation to segue into being better prepared for choosing a crypto tax professional. See Part I. Let’s dive into Part II.
List illusion
Crypto tax software is a must to...
The anatomy of tax return prep and where to start: The legacy tax approach
Let's examine the anatomy of tax preparation which is helpful when going through the process of choosing a crypto tax professional. Pre-crypto taxpayers either self-prepared tax returns or hired a professional. It's...
Understanding the meaning of NFTs
Non-fungible tokens better known as NFTs are the hottest thing in crypto. 2021 may go down as the “Year of NFTs”. You may be wondering how are NFTs taxed?
Let’s start with the NFT meaning. Then we’ll discuss the taxability.
Fungibility
...
Everybody's favorite crypto tax question
The IRS issued the final instructions for answering everybody's favorite tax question:
"At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"
- Is it good news or bad news?
- Are...
IRS virtual currency check-the-box for 2020
In our first ever Crypto Bullseye Blog where I talked about the virtual currency gotcha question for 2019.
Guess what? The saga continues for 2020 and there are a few more twists to this ongoing tale.
The "virtual currency...
The 2019 virtual currency check-the-box question
In 2019 the IRS added a virtual currency check-the-box question to Schedule 1 (a form that only some people need to file) forcing people to disclose crypto activity under the penalty of perjury.
Here is the question at the top of...
