Blockchains are great digital asset registries since they are secure and immutable. While cryptocurrencies have become synonymous with blockchain, the same technology can be used to store all kinds of digital items. The rise of non-fungible tokens, or NFTs, marks a step in that direction and opens the door to the digitization of many different assets.
Let’s take a closer look at non-fungible tokens, how they differ from traditional tokens, and how they will likely be treated from a tax standpoint for both creators and investors.
Decentralized Finance, or DeFi, allows traders to access services like trading, borrowing, lending, and earning interest without the use of financial institutions or middlemen (such as a centralized exchange, like Coinbase, Binance, or Gemini). Decentralized exchanges (DEXs) such as Uniswap utilize automated market-making - which means that rather than depending on an exchange’s order book, trades are filled using liquidity.
Our guide explains what DeFi is and how your activities with DeFi are taxed. We also explore the tax treatment of yield farming, lending, liquidity pooling, and much more.
The crypto markets are having a volatile 2021, and that means you probably lost money on your cryptocurrencies. But, we have good news! There is a smart tax strategy called crypto tax-loss harvesting that will help you reduce your losses and your tax burden.
Since cryptocurrency is treated as “property” under IRS rules, that means the same capital gains rules apply to taxes on cryptocurrency gains. So if you had losses from your crypto investments in 2021, make sure to read this crypto tax guide to save up to $3,000 on your income taxes.
Do some of your clients own crypto? Do they have to explain to you what cryptocurrency is? Would you like to improve your expertise in the area of crypto taxation? If you answered yes to any of these questions, this crypto tax guide is for you!
Learn everything you need to know about how to help your clients prepare and file their crypto taxes with our guide.