Blockchain & Cryptocurrency
Meet the Co-chairs - TAGLAW
McLeod Law LLP
Silk Legal Company Ltd.
Ellul & Co
Blockchain is a new database technology that enables users to share constantly updated documents across a network. It promises unprecedented efficiency and seems poised to make M&A negotiations and due diligence faster, more accurate and cheaper. Within a few years, blockchain code might even potentially verify and execute merger agreements. But does the reality of blockchain live up to the hype surrounding it?
Author: Brett Neate
In a word? Yes.
In IRS Notice 2014-21 the Internal Revenue Service advises that, virtual currency or commonly known as cryptocurrencies such as Bitcoin are not considered to be currency (they consider it property), investors must report any gains made in the trading or use of cryptocurrencies. Taxpayers who realize a gain in cryptocurrency must report the cash equivalent (in USD) as of the date of the transaction (buy/receive and sale/use.)
Author: Tim Valtwies
It’s no doubt that in the last year cryptocurrency prices have been on a volatile ride. Even the most stable of cryptocurrencies, Bitcoin, which managed to fall in value by as much $2000 in one day in November last year has now gained more than 15% in the last week. Nevertheless, the popularity of cryptocurrencies continues to rise and with it comes the question of whether trustees of a Self-Managed Super Fund (SMSF) can and should invest in them.
Author: Corey McLaughlin
Although they’ve been around since 2008, cryptocurrencies continue to draw fascination from every corner of the globe, making their way into TV news reports, investor meetings and even cocktail party conversations. But what are they? How do they work? And do they represent the future of a digital, cashless society?
With the boom of virtual currencies over that past few years, practitioners are seeing an increase in the number of questions relating to the taxation of these investments. One very common question asked by current and potential virtual currency fund managers: Can my investors and I contribute appreciated virtual currency assets into my pooled investment partnership/hedge fund tax deferred?
While virtual currencies are thought of by many as cash or currency, they are in fact viewed by the Internal Revenue Service more similarly to securities (specifically property) and are therefore generally subject to capital gain/loss tax treatment. In 2014, the IRS issued Notice 2014-21, which addressed the tax treatment of Bitcoin and other virtual currency transactions. In the notice, the IRS concluded that Bitcoin and other virtual currencies are to be treated as property for tax purposes, and as such, general tax principles associated with the sale or exchange of property apply to all virtual currencies. It is also specifically noted that virtual currency is not defined as “foreign currency” for tax purposes.