Legal Alerts/Details

Taxation of Cryptocurrency and Similar Transactions

April 19, 2022
  1. IRS Notice 2014-21, stating that “a virtual currency is treated as property and general tax principles applicable to property transactions apply to transactions using virtual currency.”
  2. In addition, up to $3,000 of capital losses may be used to offset up to $3,000 of ordinary income per year. 
  3. Treas. Reg. Sec. 1.1012-1(c)(1).
  4. “Ensuring Responsible Development of Digital Assets”, Executive Order (March 9, 2022).

©2024 Snell & Wilmer L.L.P. All rights reserved. The purpose of this publication is to provide readers with information on current topics of general interest and nothing herein shall be construed to create, offer, or memorialize the existence of an attorney-client relationship. The content should not be considered legal advice or opinion, because it may not apply to the specific facts of a particular matter. As guidance in areas is constantly changing and evolving, you should consider checking for updated guidance, or consult with legal counsel, before making any decisions.
One East Washington Street | Suite 2700 | Phoenix, AZ 85004
The material in this newsletter may not be reproduced, distributed, transmitted, cached or otherwise used, except with the written permission of Snell & Wilmer.