Prepared by Arturo Meza, Foreign Associate at Klug Counsel On August 16, 2022, President Biden signed the Inflation Reduction Act into law. As part of the significant changes made by this legislation, the IRS will receive a budget increase of nearly $80 billion over the next ten years to improve four areas: enforcement, operations support, […]
Prepared by Gina Lee, Senior Associate at Klug Counsel Treasury and the Internal Revenue Service (“IRS”) have finalized regulations that eliminate the requirement that an Internal Revenue Code (“IRC”) 754 election statement to adjust the basis of partnership property be signed by one of the partners of the partnership to be valid. To understand the […]
The Treasury Department (“Treasury”) and the Internal Revenue Service (“IRS”) are likely to delay a January date for crypto brokers and exchanges to begin tracking and reporting data such as customers’ capital gains and losses. The move will delay when the IRS receives the same kind of data from crypto transactions as it receives for […]
Read More… from Crypto Brokers and Exchanges Informational Reporting Likely Delayed
Many investors in cryptocurrencies have seen their investments lose significant value in recent months. U.S. taxpayers who have losses from their digital asset investments or have had them stolen can deduct losses. For individual taxpayers, typically the loss from the sale of crypto assets will result in a capital loss. Capital losses can offset capital […]
Prepared by Chris Klug, founder of Klug Counsel The recent decline in market prices for Bitcoin has taken a toll on miners, who have seen their profits slashed. According to data from BitInfoCharts, the average daily revenue for a Bitcoin miner has declined from around $13,000 at the beginning of 2018 to just $4,000 by […]
Read More… from Bitcoin Miners Experience Significant Losses Over Declining Market Prices
Prepared by Gina Lee, Senior Associate at Klug Counsel The Treasury Department is looking to require information reporting on digital asset transactions similar to other financial instruments, such as stocks and bonds. In an April 7 speech at American University outlining the Treasury’s digital asset policy, Treasury Secretary Janet Yellen said: that “appropriate guardrails” are […]