Is a Digital Asset a Security or … Is It Not?
Remember the game that kids used to play, where they would pick off the petals of daisies to determine whether their crush loves them, or loves them not? Well, ever since the rise of digital assets, it feels as though the SEC has been playing a similar game in order to establish what constitutes a […]
Cryptocurrency, New Regulations, and the FATF
One of the biggest recent developments – and currently flying under most people’s radar — is the new regulations from the inter-governmental Financial Action Task Force (FATF) that have been imposed upon crypto exchanges globally. The new regulations require relinquishing certain customer data on any transaction involving 1,000 USD/EUR or more. These are supplemental changes […]
Are Financial Advisors Ready for Digital Assets?
Individuals around the globe began accumulating bitcoin not long after the mining of the genesis block in 2009. More recently, institutional investors joined the party, and have been gradually dipping their toes in crypto waters. But, what about financial advisors and wealth managers? Are they ready to embrace digital assets and start recommending this novel […]
The Closing Window on the Current Crypto Wash Sale Rule Loophole
As 2021 comes to an end, it is crucial for investors in cryptocurrency (“crypto”) to revisit their portfolios and the capital gains they have realized during the year. Unlike stocks, where wash sale rules prevent a taxpayer from selling a security at a loss and immediately buying that same stock back, currently, no such rule […]
Crypto Losses Are Not All Alike
With the Crypto Winter as well as recent bankruptcies of various exchanges, taxpayers want to know how to best report their losses for tax purposes. There is no simple answer, and the proper tax reporting will depend on how the loss was incurred. Below, in a Q&A format, are some scenarios and possible tax reporting […]