Blockchain and digital asset tax services

Crypto investment for corporations

More and more operating companies have begun allocating cash to digital assets and cryptocurrencies. This is a new dynamic and a departure from more conventional investing by funds and others in this space. How would you do that? Explore these guidelines for the relevant questions, processes, and procedures supporting such a decision.

Deloitte TECHTalks podcast: Dissecting DAOs

When it comes to blockchain, it can be easy to get lost in the blizzard of buzzwords. Between crypto, Non-Fungible Tokens, and decentralized finance, there’s a lot to talk about. On this episode of TECHTalks, Raquel Buscaino has invited Deloitte Global Tax Blockchain Leader Rob Massey to unscramble the new acronym on the blockchain “DAOs” or Decentralized Autonomous Organizations and show us what they are, how they work, and - crazy enough - how they might be taxed.

Listen now on: Apple Podcasts | Google Podcasts | Spotify | Stitcher | SoundCloud

Engaging with stablecoins?

As the regulatory framework for stablecoins continues to unfold globally, we expect institutional interest in leveraging stablecoins for payments to continue in 2023 despite a challenging near-term regulatory environment in the United States.

Although the United States does not yet have formal stablecoin guidance or legislation at the federal level, the contours of an eventual framework have begun to take shape.

While many provisions of currently available regulatory guidance require changes in current industry practice, they also represent routine policy prescriptions, and we expect the eventual federal framework to replicate many of these standards. Thus, that guidance embodies some leading industry practices, which we explore in this piece.

Tax positions on cryptocurrency: Preparing for the 2022 tax season

Though tax regulations specifically governing digital assets still don’t exist, the taxation of digital assets is very real. Deloitte explores how you can apply current IRS rules to this emerging way of buying, selling, paying, and investing.

Information reporting of crypto: The big picture

Digital asset reporting is here. But the process doesn’t end once you file your Form 1099s. In our newest article, we’ve outlined what to expect post-filing and key areas to focus on as you work through your full information reporting lifecycle.

Learn more about how to navigate your tax reporting and compliance challenges with our Global Information Reporting services.

The Ethereum upgrade: Musing about the Merge

The Ethereum upgrade to proof-of-stake poses new issues for taxes and accounting. This paper explains the upgrade and its implications by considering such questions as: are there taxes on Ethereum from the upgrade; are Ethereum staking rewards compensation for services; when are rewards income; what are the valuation issues around rewards; and what about the fork?

Learn more about Blockchain & Digital Assets at Deloitte.

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.

Learn more about our philanthropic tax advisory services.

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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