Jim Richards的动态

The new IRS Form 1099-DA is set to make digital asset reporting clearer, especially for those managing crypto gains and losses, starting in 2025. One key feature is the wallet-by-wallet cost basis requirement, a shift from previous universal methods. This means taxpayers will need to track the purchase price of assets per individual wallet or account, not across all holdings, making for more specific but potentially complex record-keeping requirements.

With Notice 2025-7, the IRS provided relief for taxpayers navigating the new crypto regulations effective January 1, 2025. This Notice enables taxpayers to manage their specific identification (spec-ID) lot identifications for 2025 independently. This offers a solution for situations where brokers/exchanges are not prepared to handle this data, ensuring that taxpayers are not forced to use FIFO. Brokers, in turn, must confirm with customers what "adequately identifies" the applicable lots. Taxpayers now have the option to identify crypto units at the time of each sale or to establish a consistent method (FIFO, LIFO, HIFO) for all their sales. Brokers are mandated to track this information starting January 1, 2026, aligning with the initial timeline.

The AICPA Digital Asset Tax Task Force which I'm honored to chair, recently submitted a comment letter on Form 4797 requesting that the line 10 instructions be clarified. They use a term "qualifying abandonment" which does not appear to be an IRC term and is not defined in the instructions. We'd heard some people posit that a loss from abandoned crypto could go on that line making it a "for AGI" loss when per Sections 62, 63 & 67, such a loss is one subject to the 2%-of-AGI limit. https://lnkd.in/gCiEvMhC #digitalassets #AICPA

Crypto Currency Regulations could lead to BILLIONS of forms, but not until 2025 IRS Released the draft form 1099-DA for digital asset reporting.?While most of these reports will be generated (you guessed it) digitally, the paper form gives us an idea of what digital asset brokers and exchanges will need to report to the IRS, giving us a preview of the final regulations, which should come later this year.?Preliminary regs were 175 pages: complex issue, complex compliance.? Seeing the IRS whittle down the options for box 1a “Type of Digital Asset,” will be interesting. https://lnkd.in/eQe7AMa4 ?

The IRS has released a draft of Form 1099-DA for 2025, a new requirement for brokers to report digital asset transactions, including cryptocurrencies, stablecoins, and NFTs. Key details to be reported include transaction types, volumes, parties involved, and dates of transactions. Despite aligning with last year's regulations, the IRS recognizes potential implementation challenges, especially concerning non-deductible losses in changes of control or capital structure. Tax professionals should prepare for these changes and stay informed on developments. What are your thoughts on these new compliance requirements? Read more here - https://lnkd.in/dmc6U_sm #IRS #DigitalAssets #CryptoTax #TaxCompliance #Form1099DA #KNAVUS #BeyondBetter

Rev. Proc. 2024-28, which, subject to certain requirements, generally permits taxpayers to rely on any reasonable allocation of units of unused basis to a wallet or account that holds the same number of remaining digital asset units based on the taxpayer's records of such unused basis and remaining units. The allocation must be a reasonable allocation as defined in Section 5.02 of the revenue procedure and must be made as of Jan. 1, 2025.

Some more thoughts on the draft 1099-DA that the IRS released on April 19: 1. This is a lot of information for brokers to collect. There's going to be a large administrative burden for brokers to comply. 2. There is a box in the top right to check what kind of broker you are. Looks like unhosted wallets is one of them. This is a big yikes for innovation in the U.S. It feels like this is more of a KYC play than a tax reporting play. 3. Box 1i is "wash sale disallowed." This is interesting given the positition that generally crypto assets aren't subject to wash sale rules. My guess is maybe its for the recently approved BTC ETFs. Not entirely sure. 4. Box 11b asks for digital asset address. This is basically going to dox a lot of public addresses. 5. Box 11a asks for transaction ID as if brokers will need to provide a transaction hash for each sale. 6. Boxes 12a-d are for reporting transfers even though the IRS has not released any guidance when this will be required. 7. All this to say is this is a draft form 1099-DA and the IRS is requesting comments. There is a 60 day comment period. There is a chance that the final form will look different from the draft form.

If you are thinking about the impact of the new guidance from Treasury on #crypto basis tracking, you are in good company. It seems to be consuming most of our conversations every day. We just released a summary that does a nice job synthesizing key points. Check it out. For a limited time, you may have the opportunity to allocate unused basis. What a gift in Revenue Procedure 2024-28! And just in time for meaningful conversation at #bitcoin2024 Conor O'Brien Claire Baugher Nathan Tasso Mark Hindes Grant Anderson Deloitte Tax

"To be frank, I don't think enough people are talking about this or even aware of the Rev Proc 2024-28. We're trying to make all of our clients aware they need to be ready for this by 12/31 and that we can work through this reconciliation exercise right now" – Nik Fahrer, CPA, Director at Forvis Mazars US Want to know more about the upcoming IRS 1099-DA rules and Rev Proc 2024-28? Join us for this crucial webinar where Nik Fahrer breaks down these new regulations and provides practical advice for crypto accountants to stay compliant. Sign up now to hear from Nik and learn how to prepare for the 2025 reporting changes. Taxpayers must act now to comply with these rules or risk costly reporting mistakes. The IRS has released final regulations for custodial brokers under 1099-DA, and Rev Proc 2024-28 means taxpayers can no longer use the universal method for cost basis. Crypto professionals need to understand how these changes will affect their accounting practices and reporting responsibilities moving forward.

With the draft of Form 1099-DA released by the IRS, what crypto tax changes can taxpayers expect next year? ·????????Brokers must report gross proceeds for transactions effected on or after January 1, 2025. ·????????Brokers must report basis on certain transactions effected on or after January 1, 2026. ·????????Real estate professionals that are treated as brokers must report the fair market value of digital assets paid by buyers and received by sellers in real estate transactions with closing dates on or after January 1, 2026. ·????????For certain sales of stablecoins and non-fungible tokens (NFTs), brokers may choose to report the transactions on an aggregate basis to the extent the sales exceed respective de minimis thresholds. ·????????A separate de minimis threshold also applies for processors of digital asset payment (PDAP) sales. The final regulations apply to brokers that take possession of the digital assets being sold by their customers, including operators of custodial digital asset trading platforms, certain digital asset hosted wallet providers, digital asset kiosks and certain processors of digital asset payments (PDAPs). The final regulations do not include reporting requirements for brokers commonly known as decentralized or non-custodial brokers that do not take possession of the digital assets being sold or exchanged. The Treasury Department and the IRS intend to provide rules for these brokers in a different set of final regulations. You can read more from the IRS here: https://lnkd.in/eE3D28Rh