Understand the terminology and application of tax law in the context of cryptocurrencies and digital assets.
Many attorneys, accountants, and advisors struggle with the ever-changing terminology used by enthusiasts of cryptocurrencies and digital assets, as well as how to apply tax law to determine the results of the myriad transactions that are possible. This presentation will help define the terminology, explain how it’s used, and provide a framework to apply the new technology and terminology to existing tax law, as well as gain an understanding of the various proposals from Congress and state legislatures, and the regulatory efforts from the Treasury and IRS. While the terminology and transactions may be difficult to understand, this presentation will help quiet the noise from internet tax advisors to provide concrete guidance.
Learning Objectives
- You will be able to define various terms used in the cryptocurrency/digital asset world.
- You will be able to describe cryptocurrencies, tokens, coins, and various types of digital assets.
- You will be able to explain the tax implications of a myriad of transactions.
- You will be able to identify situations in which tax may be recognized and tax imposed.
Agenda
Cryptocurrencies, NFTs, Tokens, Coins, etc. (Digital Assets)
- Description of the Types of Assets and Alphabet Soup
Federal Income Taxation of Digital Assets
- Notice 2014-21 (Property V. Currency)
- Capital V. Ordinary
- Can I Deduct My Losses?
- Rewards: Mining; Staking, Baking, and the Jarretts
- Airdrops, Soft Forks, and Hard Forks
- NFTs
- Other Tokens
State-Specific Income Tax Issues (Sourcing and Sales Taxes)
- Sourcing for Income Tax and Sales Tax Issues
- Whether Sales Tax Will Be Imposed
Backup Withholding Issues
- Defining Backup Withholding
- Explaining How It Is Used
- Proposed Regulations From Treasury/IRS
Speakers
Matthew E. Foreman, J.D., LL.M.,
Falcon Rappaport & Berkman LLP- Partner and Co-chair of the Taxation Practice Group at Falcon Rappaport & Berkman LLP
- Advises businesses on the tax effects of a variety of corporate transactions, including taxable and tax- free reorganizations, mergers, sales, and acquisitions
- Advises clients on a variety of tax issues related to cryptocurrencies, including initial coin offerings (ICOs), taxability of staking and air drops, taxability and governance of DAOs, and the imposition of Sales and Use taxes on the issuance of non-fungible tokens (NFTs)
- Admitted to practice law in New York State and New Jersey, and admitted to practice before the United States Tax Court; Member, New York City Bar Association; Secretary, State and Local Tax Committee of New York City Bar Association; Member, Task Force on Digital Technologies; Member, Tax Section of New York State Bar Association
- Rated as a New York Metro SuperLawyer in the field of Taxation
- LL.M. degree in taxation, New York University School of Law; J.D. degree, The Pennsylvania State University, Dickinson School of Law; B.S. degree, University at Albany, State University of New York
