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 and contro...
Crypto CPA
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 exchanges. Many experts say it i...
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 first talked about the cor...
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. Exchanges simply freezing ...
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 significantly in the long run. Pay...
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 say yes and some ...
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 the entry into and exit out of th...
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 of your profits in real time. And we gav...
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 anything but...
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 that: Staking rewards are...
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 a break from talking abou...
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 use case for each specific ...
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 exchange...
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 largely covered this topic in our articl...
Does Crypto Qualify for 1031 Exchanges?
No, cryptocurrencies are not considered “like-kind” property and do not qualify for Section 1031 exchanges. Intangible Assets Ineligible for 1031s Post-TJCA If you’ve rea...
Can the IRS Even Track My Crypto Activity?
As you’ve likely seen if you’ve read our other articles, dealing with cryptocurrency taxes can be a nightmare. Almost every transaction is reportable in some form or fash...
Does Crypto Require FBAR or Form 8938 Reporting?
Currently, holding cryptocurrency does not require you file an FBAR filing on a FinCEN 114. Similarly, it also does not require a Form 8938. But like most things crypto, ...
Are Airdrops Taxable?
Yes, airdrops are taxable income. Actual IRS Guidance on Airdrops Somewhat surprisingly, the IRS has issued specific guidance with respect to airdrops. As we’ve noted pre...
Is Crypto Interest Taxable?
Yes, interest earned on crypto is taxable income. Crypto Interest Taxation This is true regardless of where it is held. The most common scenarios we run into: Through sho...
How Are Crypto Mining Profits Taxed?
Not all crypto is taxed the same way. Each category of cryptocurrency income has its own rules that must be followed. These different types of blockchain income are all t...
How are Gala Node Earnings Taxed?
If you’ve recently purchased a Gala Games node, you may be wondering how these earnings will be taxed. And if you aren’t, you should be. Not fully understanding how crypt...