People often ask: Do Bitcoin and other digital tokens qualify as foreign assets under U.S. law? Answer: Not inherently. Cryptocurrency holders who use overseas wallets and exchanges may be subject to reporting requirements and should familiarize themselves with two laws: FACTA and FBAR. Cryptocurrency as a Foreign Asset: Categorizing Tokens for Tax Purposes For the […]
Bitcoin is about to have its tenth birthday — and it’s starting to complicate many a divorce. From asset allocation to tax implications, digital currency is disrupting the business of dissolution. What is Crypto? The cryptocurrency world is a mushrooming market among early adopters, but the average person is only ambiently aware of them. They’ve […]
The IRS and Canadian Revenue Agency are teaming up. In fact, the later just sent the former identifying data on 1.6 million Canadian accounts. FACTA: The Who, What, When, Where, Why WHO: An acronym for the Foreign Account Tax Compliance Act, FACTA is a U.S. law that, among other things, requires foreign nations to disclose […]
What is FBAR? U.S. taxpayers with overseas accounts that cumulatively equal or exceed $10,000 at any point during the year must submit an annual accounting to Uncle Sam. It’s known as the FBAR — Foreign Bank Account Reporting — standard and authorities take it very seriously. Why? In short, cross-border finances are a matter of […]
On May 14, 2018, the cryptocurrency trading platform Bitfinex declared that users must disclose certain information for tax reporting purposes. The exchange, which is based in the British Virgin Islands (“BVI”), announced that jurisdictional regulations require it to hand over certain financial information to the BVI government. In turn, BVI officials “may” exchange that information […]