Beyond the Numbers: Tax Considerations When Investing in Crypto

Two terms many people are familiar with these days are crypto and blockchain. However, the familiarity does not always translate into understanding. There are plenty of questions about cryptocurrency and blockchain, so Weaver’s Beyond the Numbers reached out to Tim Savage, who oversees tax services for Weaver’s Cryptocurrency Task Force, to help answer those questions. Savage is in the process of building Weaver’s blockchain and digital assets division.

There are two sides to the “crypto coin.” There is the investment side of crypto that brings its own set of risks and potential rewards. This is the side of crypto that most people understand. However, the innovative blockchain technology that powers crypto ecosystems is what fascinates Savage.

“The technology is going to revolutionize existing business models.” Savage said. “I think it will help evolve our financial services sectors initially, and then it will extend to every area where rights to goods or property are necessary. Essentially, property rights are fundamental wherever money is involved, so that is an incredibly broad scope. That’s what excites me, how this technology is going to make our world a lot more efficient both in terms of cost and effort.”

Today the IRS doesn’t have a lot of guidance around cryptocurrency, or as they call it, digital assets or virtual currency. While the buying and selling of digital assets have capital gains implications like stocks, the process of buying and selling crypto isn’t the same. This difference makes accounting for large volumes of crypto transactions more difficult than maintaining financial records for stock transactions. A further challenge is presented when cryptocurrency is used as a form of payment or when participating in mining or decentralized finance. For those with a more complex set of crypto transactions, consulting with a professional tax advisor is highly recommended.

For more information or to discuss the tax, accounting, internal controls and cybersecurity considerations around cryptocurrencies, visit Weaver’s Cryptocurrency Task Force Resources or contact us.

Follow us on social media for the latest updates in B2B!

Image

Latest

shure
New Arrival: Shure Wireless Push-to-Talk Systems at Rentex!
June 19, 2024

Rentex has just received more Shure Microflex MXCW Wireless Push-to-Talk Digital Conference Systems. Each system has been labeled, quality checked, and scanned into our inventory, ready for your next event. These systems offer automatic interference detection, robust encryption, and support for up to 125 participants, ensuring reliable and secure communication. Explore all our conference solutions…

Read More
roe led
Showcasing Our Top-Quality ROE LED Panels at Rentex!
June 19, 2024

Rentex highlights a major ROE LED order heading out the door, featuring the BP 2 2.84mm Indoor LED tile with Brompton processing for superior image quality. This video showcases the cases and a quick glimpse of the scanning process, demonstrating Rentex’s commitment to top-tier AV equipment. Discover all LED options available at Rentex by visiting…

Read More
fall
Rentex Team in Action: Loading a Big Fall Order!
June 19, 2024

The Rentex team efficiently loads a major order in preparation for the busy fall season. This video showcases the team’s dedication and coordination as they handle high-quality AV equipment. With an extensive inventory and a focus on exceptional service, Rentex is ready to meet all client needs this fall. Watch the team in action and…

Read More
fall
Rentex Kicks Off Fall with a Major Order!
June 19, 2024

Rentex celebrates its first large order for the fall season, showcasing the extensive capabilities and inventory ready to meet client demands. This milestone underscores Rentex’s commitment to providing top-quality AV equipment and exceptional service. With a growing inventory and a dedicated team, Rentex is prepared for a busy and successful fall season. Trust Rentex for…

Read More