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Blockchain Asset Tax Planning: Emerging Issues with Respect to Cryptocurrencies, NFTs, and Other Digital Assets

Mining and Staking Awards, QSBS Treatment, IRAs, Wash Sales, Form 8949 and FBAR Reporting

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Monday, July 25, 2022

Recorded event now available

This course will review the current state of taxation of blockchain assets for entrepreneurs, founders, and venture capital investors. Our panel will discuss the latest IRS guidance and offer advice on planning opportunities with respect to the taxation of cryptocurrencies, NFTs, and other digital assets, with a particular focus on tax planning strategies for entrepreneurs, founders, and venture capital investors within the blockchain ecosystem.

Description

Generally speaking, the IRS treats digital assets as property. Although the IRS has issued some guidance to date, such guidance does not directly address many tax issues within the blockchain ecosystem, resulting in significant uncertainty within the industry. At the same time, the current tax landscape may provide significant tax planning opportunities for many taxpayers with material blockchain business and investment interests. In light of the foregoing, tax advisers should be familiar with the latest IRS guidance and potential tax planning strategies to assist clients with their blockchain asset portfolios.

Listen as our panel of tax experts reviews the latest guidance and strategies concerning the taxation of blockchain assets and information reporting requirements with respect to the same.

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Outline

  1. Foundational issues: money, currency, or commodity
    1. IRS guidance to date
    2. Different treatment for different blockchain assets
  2. Transactions involving Blockchain Assets
    1. Transfers and non-recognition treatment
    2. Lending transactions
    3. Constructive sales
    4. Wash sale rules
  3. Blockchain Operational Issues
    1. Revenue Ruling 2019-24: Chain spits, airdrops, and hardforks
    2. Taxation of DAOs
    3. Taxation of Mining Awards (proof of work)
    4. Taxation of Staking Awards (proof of stake)
  4. Blockchain Asset Reporting
    1. Form 8949
    2. FBAR compliance
    3. Form 8275 reporting on uncertain positions
  5. Other issues
    1. QSBS treatment and blockchain activities
    2. Blockchain assets within QOF structures
    3. Charitable gifts of appreciated crypto
    4. Blockchain assets in IRAs
    5. NFTs as collectibles

Benefits

The panel will review these and other critical issues:

  • Tax uncertainty in the blockchain ecosystem
  • Tax planning with blockchain assets
  • Blockchain assets and the tax treatment of the same within certain investment structures
  • Tax reporting with respect to blockchain assets

Faculty

Becker, Joshua
Joshua M. R. Becker, J.D.
Partner
Pillsbury Winthrop Shaw Pittman

Mr. Becker is a Tax attorney with over 10 years of international law firm and accounting firm experience. He counsels...  |  Read More

Saveri, Christopher
Christopher Saveri
Tax Director
Digital Currency Group

Mr. Saveri handles all things tax from an operational, compliance, and strategic perspective for DCG. In his role, he...  |  Read More