Select Income Tax Considerations for Crypto and Blockchain Transactions

Author: Adnan Islam

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC

This course will cover a discussion of certain U.S. federal income tax issues related to blockchain and crypto (digital asset) transactions. This course will cover fundamentals and basics of income tax on certain property transactions, i.e., for digital asset transactions, and select international tax issues with respect to blockchain and crypto companies/funds.

Publication Date: August 2021

Topics Covered

  • What is crypto (BTC, ETH, EOS) for IRS income tax purposes?
  • IRS' view is different from SEC or CFTC for crypto and digital assets
  • Recap Notice 2014-21 and IRS FAQs
  • Ordinary vs. (long-term) capital gain; carried interest (fund context)
  • Select international (U.S. income) tax issues for blockchain/crypto transactions

Learning Objectives

  • Identify basic federal income tax issues under Section 61, 1001, and 1012 with respect to crypto transactions
  • Recognize the basic income tax effects and considerations from certain crypto company/firm structures
  • Recognize that a multitude of international (U.S. income) tax issues must be considered before launching a token (ICO, IDO) off-shore, operating a blockchain company off-shore, or operating an inbound blockchain/crypto business in the USA (e.g., mining)
  • Identify which Revenue Rulings in 2019 addressed the topic of Hard Forks and Air Drops
  • Identify the tax rate applied after a hard fork if no new cryptocurrency is received
  • Recognize which basis is used if the digital asset contributed has been held for more than one year
  • Identify what is not one of the recent income tax developments related to crypto

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Read Notice 2014-21, IRS FAQs, IRC Sections 1001, 1012, 951(a) 1291, 1297, and 61.

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $62.00

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