Taxation of Virtual Currency | Practical Law

Taxation of Virtual Currency | Practical Law

A high-level overview of the US federal income tax rules that apply to virtual currency. This Note discusses the treatment of virtual currency as property for US tax purposes, IRS enforcement efforts, information reporting rules, IRS guidance on cryptocurrency losses and donations of cryptocurrency, and special considerations for hedge funds trading in cryptocurrencies. It does not discuss state or non-US tax treatment of virtual currency.

Taxation of Virtual Currency

Practical Law Practice Note w-033-4324 (Approx. 14 pages)

Taxation of Virtual Currency

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
A high-level overview of the US federal income tax rules that apply to virtual currency. This Note discusses the treatment of virtual currency as property for US tax purposes, IRS enforcement efforts, information reporting rules, IRS guidance on cryptocurrency losses and donations of cryptocurrency, and special considerations for hedge funds trading in cryptocurrencies. It does not discuss state or non-US tax treatment of virtual currency.