Blockchain & Cryptocurrency
Meet the Co-chairs - TAGLAW
McLeod Law LLP
Silk Legal Company Ltd.
Ellul & Co
Author: Michelle Chopper
If you are in the cryptocurrency space, many of you are either launching a new fund or preparing for the calendar year-end audit cycle now in full swing. We know you’re busy, yet we need to interrupt you for just a moment and draw your attention to one specific issue of immediate urgency to help ensure your crypto fund can be audited effectively: Making sure your investments and transactions are properly documented so they can be independently verified.
Contact: Saul Brenner; Berdon LLP (New York, New York, USA)
The IRS recently ruled that transactions involving bitcoin and other virtual currencies may create a tax liability since digital currencies, like stocks, are treated as property for all U.S. tax purposes1. Generally, this means that capital gains rates, as opposed to higher regular tax rates, would apply as well as capital loss limitations. This has implications for transactions such as employee wages, payments to independent contractors, and reporting gain or loss on a sale or exchange.