Blockchain and digital asset tax services

Charitable Gifts of Crypto: Old Rules to New Assets

Many types of digital assets take different forms of property, per the tax rules. As such, gifts of cryptocurrency may represent new investment vehicles. But avoiding tax consequences and ensuring crypto tax compliance means understanding how old rules apply to these new assets.

As digital assets (a.k.a. cryptocurrency) are seeing increased adoption, donors and charities alike are looking for opportunities to give or receive some type of digital asset as a contribution. Charitable gifts of digital assets can pose significant questions for both the donors and the recipient charities, as current tax laws were not necessarily designed to address digital contributions.

Crypto asset management: Managing the tax expectations gap

In the past few years, we have witnessed an exponential growth of both interest and investment in digital assets and cryptocurrencies. New players have launched related funds and investment vehicles. Established investment management funds are also exploring this new frontier.

But the tax rules governing this space are not fully established. The Internal Revenue Service (IRS) has yet to issue full guidance on how these assets are to be taxed or how to specifically classify them. So players in this space need to proceed with caution.

Your specific circumstances will inevitably shape the contours of your approach to these tax issues. But there are some important IRS guideposts that offer direction and help narrow the expectations gap. We’ve sketched out some of the key issues that warrant your attention when dealing with taxes on crypto assets.

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Uncharted territory: The state income tax implications of blockchain technology and cryptocurrency

As corporations use digital assets such as Bitcoin and tokens in increasingly frequent and creative ways, they face a range of new cryptocurrency state tax implications. Our new article outlines the potential corporate income tax challenges at the state tax level, with the goal of helping both mature companies and emerging disruptors navigate this uncertain environment and plan for possible cryptocurrency tax issues in their planning and compliance activities.

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