Taxation of Digital Assets

Some Key Concepts Covered Include:

Foundational IRS Guidance & Virtual Currency Framework — Comprehensive analysis of IRS Notice 2014-21 and Revenue Ruling 2019-24, establishing how federal tax principles apply to virtual currency transactions and the regulatory foundation for digital asset taxation in the United States.

Character of Income & Transaction Classification — Detailed examination of tax treatment across diverse virtual currency scenarios including investor trading activities, spending crypto for goods and services, mining rewards, employee compensation, contractor payments, and the impact of income characterization on applicable tax rates.

Hard Forks, Airdrops & Taxable Event Recognition — Technical exploration of blockchain protocol changes and token distributions, analyzing various hard fork and airdrop scenarios to determine when taxable income is triggered and how to calculate basis in newly received virtual currencies.

Compliance Reporting & Form Preparation — Practical guidance on completing Form 1040 virtual currency disclosures and Form 8949 capital gains reporting, including hands-on CoinTracking lab exercises for portfolio management, basis tracking, and accurate tax documentation of digital asset transactions.

‍Strategic Tax Planning & Liability Minimization — Advanced tax strategies for business owners and investors to optimize virtual currency tax positions, equipping accountants with the knowledge to provide sophisticated client advisory services in this evolving area of tax law.

There has been very limited guidance from the Internal Revenue Service (IRS) on the taxation of digital assets. This course will review the guidance that does exist and how it applies to basic transactions that should be understood by the learner. For purposes of consistency within this course, we will refer to all digital assets and cryptocurrency as “virtual currency” (per IRS guidance).

The Taxation of Digital Assets offers insights into how such assets are taxes and the relevant filing process necessary to correctly account for tax liabilities. Additionally, the course discusses tax compliance and helps learners navigate the complex process of filing taxes for digital assets.

CPE Version: Upon successfully completing this course and passing the Final Assessment, you will receive 2.5 Continuing Professional Education credits.