IRS Breaks Silence on Staking Income
The IRS has finally issued guidance on staking income. They state that cash-basis taxpayers must report the staking rewards when they have gained full dominion
November 24, 2023
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OFFICIAL BLOG
First Words From IRS on NFT Taxation
The IRS has finally broken its silence on the taxation of nonfungible tokens (NFTs) – at least partially. Notice 2023-27 gives us some indication of
November 15, 2023
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IRS Says Decline in Crypto Value Is Not a Tax Deduction
The IRS has stated that a decline in the value of a cryptocurrency or NFT does not qualify as a loss under IRC section 165.
February 3, 2023
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IRS: Appraisals Required to Deduct Crypto Donations
Qualified appraisals are required for any donation of cryptocurrency exceeding $5,000. The IRS also noted that if a taxpayer failed to obtain an appraisal, they
January 26, 2023
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Casualty and Theft Losses From Crypto Exchange Failures
There is no clear consensus on whether or not crypto investors are able to take casualty or theft losses for funds held on defunct crypto
November 14, 2022
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No Staking Clarity After Jarrett Lawsuit Dismissal
Last year we wrote a series of articles talking about the Jarrett v. U.S lawsuit and its implications for the taxability of staking income. The
November 7, 2022
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Tax Write-Offs for Crypto Held on Insolvent and Bankrupt Exchanges
Crypto investors are likely to get tax write-offs from assets held on insolvent exchanges, but they are probably going to have to wait a while.
July 15, 2022
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Bear Market and Crypto Winter Opportunities: Accelerate Income
Accelerating and increasing your income can be a good strategy during a bear market. You will pay the taxes sooner, but it may save you
July 14, 2022
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Bear Market and Crypto Winter Opportunities: Tax-Loss Harvesting
Most people aren’t making a ton of money in crypto right now. The market is down substantially and a lot of people – especially those
July 13, 2022
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Are Wrapping and Unwrapping Crypto Tokens Taxable Events?
Wrapping Bitcoin and other tokens allows them to be used on different networks. Is the act of wrapping and unwrapping these tokens taxable? Some experts
July 11, 2022
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FIFO, HIFO, or LIFO: What Is the Best Accounting Method for Your Crypto Taxes?
The best crypto accounting method will depend on the type of investor. It will also vary based on overall market conditions. FIFO can be helpful
July 8, 2022
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How Are Liquidity Pools Taxed?
The IRS has not issued any guidance on the taxation of liquidity pools. That said, there are a few prevailing theories on whether or not
July 7, 2022
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Are P2E Games Good Investments?
Is it a good idea to invest in play-to-earn (P2E) games? In a previous article, we talked about the need to cash out a percentage
July 5, 2022
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Stablecoins Are Not “Risk Free”
Stablecoins are not currency. While they are an important part of blockchain’s development and can be a component of your crypto investing strategy, they are
June 20, 2022
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Cashing Out on Your Crypto Profits to Avoid Tax Catastrophes
Taking profits and setting aside a percentage of that income is one of the most important things you can do as part of your crypto
June 16, 2022
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What Are Wrapped Crypto Tokens and How Do They Save You on Taxes?
High interest DAOs are horribly tax inefficient. Wrapping the token helps correct this, although it is unclear if this method will hold up to IRS
June 10, 2022
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IRS Says Not All Crypto Is Property
A while back we wrote about the Jarrett v. USA case and how it will affect the taxation of staking income. The Jarrett Case’s Importance
May 17, 2022
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Are Crypto Credit and Debit Card Rewards Taxable?
In general, rewards received from crypto credit and debit cards are not taxable. They are considered a reduction in purchase price, not income. However, promotional
May 2, 2022
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Is Paying With a Crypto Debit Card or Crypto Credit Card Taxable?
Crypto Tax CPA explains the benefits and risks of using crypto cards.
April 28, 2022
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How Is Node Operator and Node Validator Income Taxed?
Node operators will most often be taxed the same way as crypto miners. But there are situations where their rewards could be taxed as regular
January 6, 2022
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Jarrett v. U.S Lawsuit: The Future of Crypto Staking Income Taxability
A few months ago, we discussed how staking rewards are currently taxed. In that article, we noted that under current IRS guidance we can discern
December 30, 2021
1 Comment
How Do I Write Off Worthless NFTs and Cryptocurrency Tokens?
You are able to write off worthless crypto and NFTs if you can show you have permanently discarded them. The simplest way to do this
December 27, 2021
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How Will Metaverse NFTs Be Taxed?
Before reading this article, we suggest first reading our previous articles on NFTs and P2E gaming. While they’re of course different topics, several of the
December 2, 2021
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Are Crypto P2E (Play-To-Earn) Gaming Rewards Taxable?
Rewards from blockchain games are likely taxable – either as hobby income or as business income. Making Money Just by Gaming We’re going to take
November 30, 2021
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How Are Gaming NFTs Taxed?
Gaming NFTs vs. Art NFTs In our last article we discussed how digital art NFTs are taxed. Some of those principles will be true for
November 26, 2021
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How Are Art NFTs Taxed?
In our last article on NFTs we noted how the different use cases for various NFTs may affect how they are taxed. NFTs that have
November 25, 2021
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How Are NFTs Taxed?
At this point there has not been any NFT-specific guidance issued by the IRS. Their taxation will vary based on future guidance and likely the
November 24, 2021
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Do I Qualify for Crypto Trader Tax Status?
It is very unlikely that crypto investors will qualify for “Trader Tax Status” (TTS) on their tax returns, although it is not impossible. Day Trading
November 23, 2021
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Best Crypto Exchanges
Update: since we originally posted this article, the crypto market has shifted considerably. Celsius and Voyager have both stopped allowing withdrawals and other exchanges are
November 22, 2021
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Are Hard Forks Taxable Income?
Tokens received from hard forks are taxable income if a new token is received as a result of the hard fork. Hard Fork Taxation We
November 15, 2021
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