For non-cash charitable contributions to a 501(c)(3) organization, taxpayers often need clarification about the rules and regulations surrounding the deductions they can claim on their taxes. One area of confusion is the requirement for a qualified appraisal for cryptocurrency contributions.
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In a recent Chief Counsel Advice, the Internal Revenue Service (IRS) addressed the applicability of I.R.C. Section 165 to cryptocurrency that has declined in value. The advice concluded that an individual, who owns cryptocurrency that has substantially declined in value, can deduct the loss under Section 165, since it would be an itemized expense disallowed by the Tax Cuts and Jobs Acts (TCJA).
People often ask: Do Bitcoin and other digital tokens qualify as foreign assets under U.S. law? Answer: Not inherently. Cryptocurrency
Love them or hate them, NFTs are here to stay. Some only see a digital picture of an ape in human clothing. Others see an opportunity for creatives and artists to securely sell or trade with people all over the world via the blockchain. The NFT market has exploded over the last several years and shows no signs of letting up.
If you’ve ever invested in crypto, then you know seeing the market plummet before your eyes can be a harsh reality. With so much volatility, crypto tax-loss harvesting can be a silver lining that helps save thousands of dollars when it comes time to pay Uncle Sam.
The U.S. infrastructure bill would help crypto tax enforcement, requiring all brokers to report info about customer transactions to the IRS.
Back in 2020, Coinbase announced that they would no longer issue Form 1099-K to their users, and instead would issue