{"id":4434,"date":"2023-03-04T10:21:47","date_gmt":"2023-03-04T16:21:47","guid":{"rendered":"https:\/\/cookco.us\/news\/?p=4434"},"modified":"2023-03-04T10:21:53","modified_gmt":"2023-03-04T16:21:53","slug":"digital-asset-reporting-and-tax-requirements","status":"publish","type":"post","link":"https:\/\/cookco.us\/news\/digital-asset-reporting-and-tax-requirements\/","title":{"rendered":"Digital Asset Reporting and Tax Requirements"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Greg reminds taxpayers that there&#8217;s a question at the top of Forms 1040 and 1040-SR that asks about digital asset transactions. All taxpayers filing these forms must check the box indicating either &#8220;yes&#8221; or &#8220;no.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If an individual disposed of any digital asset that was held as a capital asset through a sale, exchange or transfer, they should check &#8220;Yes&#8221; and use&nbsp;<a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-8949\">Form 8949, Sales and other Dispositions of Capital Assets<\/a>, to figure their capital gain or loss and report it on&nbsp;<a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-schedule-d-form-1040\">Schedule D (Form 1040), Capital Gains and Losses<\/a>, or&nbsp;<a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-709\">Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return<\/a>, in the case of a gift.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples of transactions involving digital assets include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A sale of digital assets.<\/li>\n\n\n\n<li>The receipt of digital assets as payment for goods or services provided.<\/li>\n\n\n\n<li>The receipt or transfer of digital assets for free (without providing any consideration) that does not qualify as a bona fide gift.<\/li>\n\n\n\n<li>The receipt of new digital assets as a result of mining and staking activities.<\/li>\n\n\n\n<li>The receipt of new digital assets as a result of a hard fork.<\/li>\n\n\n\n<li>An exchange of digital assets for property, goods or services.<\/li>\n\n\n\n<li>An exchange\/trade of digital assets for another digital asset(s).<\/li>\n\n\n\n<li>Any other disposition of a financial interest in digital assets.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If individuals received any digital assets as compensation for services or disposed of any digital assets they held for sale to customers in a trade or business, they must report the income as they would report other income of the same type (for example, W-2 wages on Form 1040 or 1040-SR, line 1a, or inventory or services on Schedule C).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">More information on digital assets can be found in the&nbsp;<a href=\"https:\/\/www.irs.gov\/instructions\/i1040gi\">Instructions for Form 1040 and 1040-SR<\/a>&nbsp;and on the IRS&#8217;&nbsp;<a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/digital-assets\">Digital Assets page<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Greg reminds taxpayers that there&#8217;s a question at the top of Forms 1040 and 1040-SR that asks about digital asset transactions. All taxpayers filing these forms must check the box indicating either &#8220;yes&#8221; or &#8220;no.&#8221; If an individual disposed of any digital asset that was held as a capital asset through a sale, exchange or [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4435,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2023-03-04T16:19:04Z","apple_news_api_id":"28466133-47c0-4050-be55-16ced45ea860","apple_news_api_modified_at":"2023-03-04T16:19:05Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/AKEZhM0fAQFC-VRbO1F6oYA","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[1,82,86],"tags":[],"class_list":["post-4434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-tax","category-technology"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/4434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/comments?post=4434"}],"version-history":[{"count":0,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/4434\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media\/4435"}],"wp:attachment":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media?parent=4434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/categories?post=4434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/tags?post=4434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}