In this guide, we’ll walk through a few strategies that can help you save thousands on your tax bill ..read more

In this guide, we’ll break down everything you need to know about how digital assets are defined for tax purposes ..read more

Tax Implications of DeFi and Yield Farming Crypto Taxes: The Basics It is important to know that pursuant to guidance issued by the IRS (Notice 2014–21), the IRS treats cryptocurrencies (they use the term “virtual currencies”) like Bitcoin, Ethereum, AAVE and UNI as property for tax purposes. This means that crypto transactions in which you sell crypto for fiat currency, trade BTC for ALTs or ALTs for BTC, or use crypto to buy goods or services will trigger a taxable event. These transactions will result in either a capital gain or a capital loss, depending on whether your ..read more

IMAGE CREDIT: HASHMASKS ARTWORK. IMAGE: HASHMASKS What is a Non-Fungible Token? Non-fungible tokens (NFTs) have seen an explosion in popularity over the past few months. Many people have probably seen the letters “NFT” show up on their timeline and thought to themselves “what the heck is that?” and “how does this benefit me?”. Well, NFTs are tokens that are generated using blockchain technology to link the non-fungible token with a digital asset that can’t be replicated. The token represents something unique on the blockchain an ..read more

Crypto Taxes in 2021 The Taxation of Cryptocurrency It is important to know that pursuant to guidance issued by the IRS (Notice 2014–21), the IRS treats cryptocurrencies (they use the term “virtual currencies”) like Bitcoin, Ethereum, AAVE and UNI as property for tax purposes. This means that crypto transactions in which you sell crypto for fiat currency, trade BTC for ALTs or ALTs for BTC, or use crypto to buy goods or services will trigger a taxable event. These transactions will result in either a capital gain or a capital loss, depending on whether your crypto investment appreciated or dep ..read more

Federal Tax Deadline Change! In response to the coronavirus, Treasury Secretary Steven Mnuchin announced today that taxpayers will get a three-month reprieve to pay their 2019 taxes. This covers both individuals and corporations. For individuals, this reprieve is valid for income taxes on up to $1 million owed in tax. For corporations, this reprieve is valid for corporate income taxes on up to $10 million owed in tax. According to Secretary Mnuchin, this deferral period will allow taxpayers to hold off on their tax payments without being subject to interest and penalties. This effectively has ..read more

Binance is Banning US Users! This week Binance will be blocking US users from trading on their platform. While users will still be able to login to their accounts, their access to the platform will be limited. After September 12th, 2019, no US person will be able to settle trades or deposit funds on Binance. There are some crypto assets that are currently only listed on Binance or Binance and other exchanges that restrict US access. It is important to note these assets because if you currently have a position in one of them it may be wise to exit that position prior to the September 12th deadl ..read more

The IRS Is Coming After Those Who Have Not Reported Their Crypto Income! The IRS recently began sending letters to crypto investors informing them that they may owe taxes on unreported earnings and that they should file amended returns. The crypto community took notice. We have known for quite a while about the IRS’s big victory in their petition for an order to authorize a “John Doe” summons to Coinbase for information related to transactions in cryptocurrency. Seeing as the IRS was granted access to the name, date of birth, address and taxpayer IDs of Coinbase users who either bought, s ..read more

This post covers the basics regarding the tax implications of receiving gifted crypto assets. Gift tax implications are not discussed. WHAT IS A GIFT? Per Section 102 (a) of the Tax Code, gross income does not include the value of property acquired by GIFT, bequest, devise, or inheritance. In determining whether something is a gift, Courts look at the motivation of a donor – that is if the gift was made out of detached and disinterested generosity, then it’ll be deemed to be a gift. WHEN CRYPTO IS GIVEN AS A GIFT. Your cost basis in gifted crypto would be the same as the donor’s cost basis if ..read more

Whether you are new to crypto or have experience filing your crypto taxes, here are 5 very important things to note for your 2018 tax filings.  1. Cryptocurrencies are capital assets and profits are recognized as capital gains For each taxable crypto event, a calculation must be made to determine whether you have a capital gain or loss to recognize. These gains/losses are reported on your tax forms. These taxable events include: Selling crypto for fiat currency (i.e. USD)  Trading BTC for ALTs or ALTs for BTC Using crypto to buy goods or services Receiving crypto due to a fork ..read more