Background Info
This government agency has not established specific tax rules for digital assets in the U.S.
What is the Internal Revenue Service (IRS)?
This term describes how digital assets are treated for tax purposes at the federal level in the U.S.
What is property?
This U.S. tax form now requires reporting of digital assets, expanding beyond just virtual currency for all individuals?
What is Form 1040?
Digital assets that are donated follow the same rules as this asset.
What is property?
T/F: All U.S states follow the same legislation regarding the tax of digital assets
What is false?
This date is when the new proposed regulations by the IRS are supposed to go into effect.
What is January 2025?
This term refers to the difference between the fair market value and the tax basis of a digital asset at the time of a transaction.
What is a capital gain or loss?
This form must be filed for a digital asset sold, traded, exchanged, paid, or transferred.
What is Form 8949?
Charitable Contributions related to the tax-exempt purpose are recognized at this value
What is fair market value?
T/F: A taxpayer can recognize a loss on a digital asset that declines in value
What is false?
This Act marked the first time the Internal Revenue Code recognized digital assets.
What is The Infrastructure Investment and Jobs Act?
This term describes the tax treatment of digital assets used for employee compensation in the U.S.
What is ordinary income?
This form, enacted on January 1, 2024, requires reporting by those who receive digital assets in exchange for goods and services for any transaction worth more than $10,000
What is Section 6050I?
This is needed for charitable contributions beyond $5,000
What is a qualified appraisal?
T/F: When a digital asset becomes entirely worthless, it is treated as an ordinary loss
What is true?