Digital Assets and Consensus Mechanism Changes – A Tax Perspective

As the world of digital assets continues to evolve, many investors and users of cryptocurrencies find themselves navigating the complexities of the tax landscape. One such complexity involves the tax implications of holding a cryptocurrency that undergoes a protocol upgrade, specifically a change in the consensus mechanism. This scenario describes the ETH merge (the Merge) […]

New Beneficial Ownership Reporting Requirements: What Every US Business Needs to Know

The Financial Crimes Enforcement Network (FinCEN) has recently introduced new reporting requirements for Beneficial Ownership Information (BOI), likely affecting nearly every business in the United States. These changes have raised many questions and concerns among business owners, who now must understand and comply with the updated regulations. In this blog post, we will explore the […]

Some NFTs May Be Collectibles, and Why That Matters

In a recent development, the Internal Revenue Service (IRS) has issued Notice 2023-27, which announces its intention to provide guidance on the treatment of specific nonfungible tokens (NFTs) as collectibles under ยง408(m) of the Internal Revenue Code. This treatment is relevant for other purposes of the Code, including the long-term capital gains tax rate under […]

Hobby Loss Rules — You Probably Can’t Deduct That

When it comes to taking a loss on a business activity for tax purposes, it’s important to understand that the activity must be engaged in as a for-profit venture, with a profit motive behind it. However, some wealthy individuals try to use hobbies as a way to create abusive tax shelters, running a fake business […]