How to Harvest a Crypto Tax Loss and Why It May be Beneficial
The month of May was a rough month for almost every virtual currency. In many cases crypto currencies lost roughly half their value in less than three weeks. For example,…
A Guide to Recordkeeping for Tax Purposes in Virtual Currency – How to Identify a Specific Unit
One theme of our publications to date has been the need for individuals participating in the virtual currency space to keep meticulous records. Aside from being necessary for accurate tax…
The Details For Determining if Capital Gains or Losses are Long-Term or Short-Term
When an individual holds a crypto asset there are four different tax buckets a future sale or exchange could fall into with regards to capital gains or losses. The four…
There are No Tax Consequences When Crypto is Moved Between Wallets Controlled by the Same Individual
To date our articles have explored topics that result in an individual recognizing gains or losses because of the sale or exchange of a crypto position. However, not all actions…
THORChain Pushes New Decentralized Frontier with Innovative Features – Tax Avoidance Is Not One of the Innovative Features
THORChain is a decentralized platform that allows its users to swap crypto across different crypto blockchains without the assistance of a third-party. The technology pushes forward one of bitcoin’s original…
The Costly Taxes Associated with Diversifying a Crypto Portfolio
Many individuals have accumulated a great fortune due to the success of one cryptocurrency. While not advocating any position on the theory, many wealth advisors would tell individuals in such…
What Are the Tax Consequences of Exchanging a Virtual Currency for Other Property?
One of the many crypto trends in 2021 is more companies being willing to accept crypto as payment for their products. Tesla became the latest major player to state it…
I’m Getting Paid in Virtual Currency – What are the Tax Consequences?
Some employers are paying their employees with virtual currency and many more are beginning to explore the possibility. The starting left tackle for the Carolina Panthers, Russell Okung, recently convinced…
Selling Virtual Currency – What Are the Tax Consequences?
The IRS is clear that the sale of virtual currency is a tax realization event. This means that a person selling virtual currency will recognize gain or loss on the…
The Basics of Basis in Virtual Currency
The concept of basis is one of the most fundamental underpinnings of the United States tax system. Basis assigns a value to a taxpayer’s property or investment and is used…