The Corporate Transparency Act now requires all companies formed in the United States to file a report with FinCEN that identifies all individuals who own or control at least 25% of the ownership interests in the company. Under the Act, an “ownership interest” includes equity, stock, or voting rights; a capital or profit interest; convertible…
The IRS has announced that businesses do not have to report the receipt of digital assets as cash to FinCEN until the IRS issues final rules relating to the reporting requirements. The delay is imposed by US federal law, which requires a public comment period prior to implementing new regulations. Under Code Sec. 6050I(a), any…
The Financial Accounting Standards Board (FASB) announced that it would issue final rules after gathering public comments received in response to an exposure draft of proposed rules for crypto assets. The exposure draft, issued March 23, 2023, resolves uncertainties and formalizes Generally Accepted Accounting Principles for bitcoin and other crypto assets for issuers of GAAP-basis…
Anyone who sticks with cryptocurrency investing long enough will eventually find themselves holding worthless or nearly worthless coins. Altcoins of limited utility will simply fail to catch on, or developers will disappear, or the market will fail to show favor to an obviously useless meme coin. In almost all cases, worthlessness will coincide with the…
The IRS requires a qualified appraisal for donations of property. Without it, your charitable donation deduction may be disallowed. Generally, IRC Sec. 170(f) requires a taxpayer to satisfy certain substantiation requirements to claim a charitable contribution deduction. Recently, the IRS disallowed a taxpayer’s charitable contribution deduction for a donation of more than $5,000 in cryptocurrency…
In late 2022, the IRS announced that brokers will not be required to report or furnish additional information with respect to dispositions of digital assets, issue additional statements, or file any returns with the IRS on transfers of digital assets, until the IRS issues applicable final regulations. In the meantime, a broker may report gross…
With inflation at the highest recorded rate since the early 1980’s (and climbing) and the specter of higher taxes looming on the horizon, many Americans are looking for innovative ways to protect and grow their assets. One popular device is gold bullion. Gold has long been prized as a robust store of value and hedge…
The answer: it depends. Tax rules in the United States look to the “origin of the claim” to determine whether funds paid in connection with a lawsuit are taxable. For example, damages paid in satisfaction of lost income would be taxable because the claim originated in the loss of monies that would have been taxable…
As the cryptocurrency economy continues to grow, many of our clients and colleagues have asked for guidance relating to integration of this asset class into a wholistic estate plan. Crypto assets can be an outstanding addition to a diversified portfolio, especially as a means of counterbalancing more conservative investments like blue chip stocks or bonds. However,…
With year-end approaching, it is time to start thinking about moves that may help lower your tax bill for this year and next. This year’s planning is more challenging than usual due to the uncertainty surrounding pending legislation that could, among other things, increase top rates on both ordinary income and capital gain starting next…
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