Tax Return Reporting of Cryptocurrency
by Andie KramerYou need to consider how you’ll report digital asset transactions on your 2022 tax returns. Tax reporting requirements for digital assets have changed yearly since 2019, when the IRS...
View ArticleTaxation of Stock Options Held by Investors: What to Know
by Andie KramerWhen it comes to the taxation of stock options, the Internal Revenue Code (Code) does not define capital assets. Rather, it identifies those assets that are not capital assets. Code...
View ArticleHedging: Favorable Tax Treatment Requires Careful Compliance
By Andie KramerIt is a common practice for businesses to manage their business price risks by entering into derivative contracts. Because their business activities generate ordinary income and loss,...
View ArticleIRS Takes a New Approach to NFT Taxes and ‘Collectibles’
By Andie Kramer and Julia Vastano*Until very recently, the IRS has been silent about the tax treatment of non-fungible tokens (NFTs). An almost unknown market in 2020, NFTs skyrocketed to prominence in...
View ArticleCan You Write Off Crypto Losses? IRS Says Intention Matters
By Andie KramerA taxpayer’s investment losses, including losses on digital assets such as cryptocurrencies and non-fungible tokens (NFTs), are not deductible unless the taxpayer’s activities rise to...
View ArticleWhat NFT Creators Need to Know About Taxes
By Andie KramerThe taxation of non-fungible tokens (NFTs) is still something of a mystery. All we have to go on is the IRS definition of digital assets and Notice 2023-27. The IRS digital asset...
View ArticleAre Some Tokens Securities? Stock? And What Does It Mean for Taxes?
By Andie KramerWe’re seeing an increasing variety of digital tokens that represent rights to, interests in, or ownership of an entity.[1] We’re also seeing digital tokens that represent debt...
View ArticleAre Crypto Losses Tax Deductible as Worthless or Abandoned Property?
By Andie KramerWhen taxpayers sell digital assets at a loss, their tax loss is quite straightforward. Their loss equals the amount that their tax basis exceeds the amount they received for the sale.[1]...
View ArticleThe Wash Sales Rule and How Cryptocurrencies are Categorized
By Andie Kramer In December 2022, I was quoted in an article in “Tax Notes” by Lee Sheppard to the effect that the wash sales rule in Internal Revenue Code (Code) Section 1091(a) (losses from wash...
View ArticlePrivate Funds
By Nicholas C. Mowbray, Andie Kramer, Rachel Behar, Laura Knipp, and Samuel EichensteinThis article provides the definitions and history of hedge funds and private equity funds, and identifies areas in...
View ArticleIRS Speaks–Sort of–on NFTs and “Collectibles”
By Andrea S. Kramer, Nicholas C. Mowbray, and Julia VastanoThis article describes the technological qualities of NFTs, introduces and explains the interim guidance provided in Notice 2023-27, looks at...
View ArticleBest Lawyers names Andrea. S. Kramer 2024 "Lawyer of the Year"
August 17th, 2023, CHICAGO – The firm is pleased to announce the selection of Andrea (Andie) S. Kramer for inclusion in the 30ᵗʰ edition of The Best Lawyers in America®. Best Lawyers is a Purely Peer...
View ArticleBitcoin, Virtual Currencies, and Digital Assets
By Andie Kramer and Nicholas C. MowbrayThis article addresses tax consideration and government positions with respect to virtual currencies and digital assets. © 2023 CCH Incorporated and its...
View ArticleDigital Asset Theft Loss Deductions are More Complicated Than You Think
By Andie KramerTaxpayers can take a tax deduction with respect to “theft” losses that result from an illegal “taking of property” done with criminal intent.[1] Among various other types of criminal...
View ArticleHedging: Inadvertent Errors and Tax Identification
By Andie KramerBusinesses often manage their price risks by hedging those risks with financial derivative contracts. Because businesses generate ordinary income and loss on their normal business...
View ArticleValuing Noncash Charitable Donations, Including Digital Assets
By Andie KramerAs we’re approaching year end, this is a good time to revisit the tax rules that apply to donating noncash property—including donations of digital assets.Do Favorable Rules Apply to...
View ArticleAccepting Cryptocurrency and Digital Asset Donations: What Charities Need to...
By Andie KramerCharities should address several issues when considering whether to accept donations of digital assets, defined to include cryptocurrency, stablecoins, and non-fungible tokens (NFTs).[1]...
View ArticleThe Benefits of Donating Digital Assets to Charity
By Andie KramerTaxpayers can receive significant tax benefits when donating cryptocurrency and other appreciated digital assets to a charity. This article looks at some key considerations to keep in...
View ArticleThe Down and Dirty on Crypto Scams
By Andie KramerCrypto scammers have stolen billions of dollars from victims around the world, and they are still active in seeking new victims. We don’t know the true extent of crypto losses as people...
View ArticleA Comprehensive Guide to the Deductibility of Digital Asset Losses
By Andie KramerIn November 2023, almost 11,000 cryptocurrencies and digital tokens were listed on CoinMarketCaps.com. In addition, tens of thousands of non-fungible tokens (NFTs) are sold daily on...
View Article
