Deloitte and Bloomberg Tax & Accounting Announce the Release of a Comprehensive Tax Management Portfolio on Taxation of Cryptocurrency and Other Digital Assets

New York, NY, June 10, 2024 — In an effort to provide clear guidance on complex tax issues involving digital assets, Deloitte and Bloomberg Tax & Accounting today announced the publication of Tax Management Portfolio Taxation of Cryptocurrency and Other Digital Assets, No. 190-2nd, which is now available on the Bloomberg Tax Research platform.

As the ultimate guide to the tax treatment of digital assets, Portfolio 190 examines the U.S. federal income taxation of digital assets, including cryptocurrencies. It provides a detailed analysis of the classification of digital assets for tax purposes and offers an inclusive overview of the digital asset ecosystem, tax guidance to date and accounting treatment. The Portfolio further delves into the tax implications of using, dealing, trading and investing in digital assets, and addresses novel tax questions raised by digital asset transactions.

"Digital assets and blockchain technologies are reshaping our financial system and broader commercial activities,” said Rob Massey, partner, global & U.S. Tax Blockchain & Digital Assets leader, Deloitte Tax LLP, and a principal author of Portfolio 190. “The transformative impact of blockchain and digital assets is inspiring a fresh lens on the tax implications of these transactions. There is limited tax guidance that is directly on point which leads many practitioners to use analogies, case law and basic tax principles. This Portfolio represents a significant step forward in offering comprehensive insights on the tax considerations of digital asset transactions. We are incredibly proud of the effort to produce this Portfolio, which involved collaboration among more than 50 leaders across Deloitte Tax who came together to produce this comprehensive resource.”

Portfolio 190 also discusses the potential consequences of activities and transactions undertaken by certain types of investment entities, outlines the necessary information reporting standards and provides an overview of select international and state tax considerations surrounding digital assets. It covers the concept of a barter transaction and the tax implications of using digital assets in place of fiat currency for ordinary business transactions. Additionally, the Portfolio details the new types of financial products that are based on digital assets and the unique tax considerations based on their design. Finally, it covers compensation matters involving digital assets and tax considerations for individuals, estates and trusts who invest in or use digital assets.

"The taxation of digital assets is complicated, often involving unique business models that require careful consideration of the technology as well as the facts and circumstances surrounding the transactions," said Conor O’Brien, senior manager, Deloitte Tax LLP, and a principal author of Portfolio 190. "This Portfolio is intended to serve as a guide for navigating these complexities and references relevant authoritative tax frameworks.”

"The world of digital assets is rapidly evolving, and it's crucial that tax professionals have access to perspectives and examples from thought leaders who share real-life examples and scenarios,” said Heather Rothman, vice president of analysis & content, Bloomberg Tax & Accounting. “This Portfolio’s valuable guidance, enabling tax professionals to navigate the complexities and better serve their clients and organizations in this evolving landscape, is a testament of Bloomberg Tax’s commitment to provide our customers with practical and insightful tax guidance they can trust."

The Tax Management Portfolio, Taxation of Cryptocurrency and Other Digital Assets, No. 190-2nd can be cited as a reference for digital assets taxation, marking a significant contribution to the evolving discourse on the taxation of cryptocurrencies and other digital assets.

About Bloomberg Tax & Accounting
Bloomberg Tax & Accounting provides practitioner-driven research and technology solutions that deliver timely, strategic insights to enable smarter decisions. From our unparalleled Tax Management Portfolios to technology designed to streamline the most complex planning and compliance scenarios, we deliver essential news and analysis, practical perspectives, and software that help tax and accounting professionals around the globe mitigate risk and maximize business results. For more information, visit Bloomberg Tax.

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s approximately 457,000 people worldwide connect for impact at www.deloitte.com.