Can that Be True? Learn More about the Reporting and Taxation of Digital Assets

For U.S. tax purposes, digital assets are considered property, not currency. A digital asset is stored electronically and can be bought, sold, owned, transferred, or traded. The tax definition of a digital asset is any digital representation of value recorded on a cryptographically secured, distributed ledger (blockchain) or similar technology, like convertible virtual currencies and cryptocurrencies such as Bitcoin, Stablecoins, and non-fungible tokens (NFTs). In July, IRS and Treasury issued final regulations on broker digital assets information reporting. Read this KPMG report to learn more.

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• Tax and Accounting Aspects of Virtual Currency
  Learn about the reporting of virtual currency. A payment using a virtual currency is subject to information reporting to the same extent and in the same manner as any other payment in property. As an example, a person who, in the course of a trade or business activity, makes a payment of fixed and determinable income, using a virtual currency with a value of $600 or more, to a U.S. nonexempt recipient in a taxable year, must report that payment to the IRS and to the payee. 

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