NFT Taxation – An Introduction to the Federal Income Tax Implications of Creating or Investing in NFTs

Despite Non-fungible Tokens (NFTs) growing popularity, the Internal Revenue Service (IRS) has not yet published specific federal income tax guidance prescribing how NFT transactions should be taxed. Nevertheless, NFT transactions, like cryptocurrency transactions, are generally considered to be subject to federal (and often state) income taxation. This article is limited to federal income taxation. The next article in this series will address the state and local tax implications of NFT transactions.

Investors should expect that the sale of an NFT should be treated as the sale of a capital asset, and some NFTs could meet the definition of “collectibles.” When collectibles are sold or exchanged,

 » Read more

Cryptocurrency Update and Accounting Considerations for Not-for-Profits

Cryptocurrency is here to stay, and more and more not-for-profit (NFP) organizations are being faced with the decision on whether to accept these assets as gifts, and if they decide to, what to do next?

Although the Financial Accounting Standards Board (FASB) is still working on clarifying guidance for this unique asset, there are generally accepted accounting principles (GAAP) considerations to be followed today. As such, the first decision an organization must make when agreeing to receive cryptocurrency is to determine if they will sell or hold, and if they’ll handle this directly or through a third-party.

Selling and Holding Cryptocurrency

If an organization chooses to immediately sell the donated cryptocurrency,

 » Read more

Cryptocurrency Gift Strategies for Not-for-Profits

This article originally appeared in Journal of Accountancy. Reprinted by permission.

Before deciding whether your not-for-profit organization should accept cryptocurrency for gifts, you must understand what it is. A cryptocurrency, or virtual currency, is a digital medium of exchange that can be used for purchasing, selling, and storing value, but it is not backed by a sovereign government.

In that light, bitcoin, ether, syscoin, and litecoin are among the best-known cryptocurrencies, but there are more than 2,000 cryptocurrencies listed on Coinmarketcap.com, with varying degrees of popularity.

The U.S. Treasury currently classifies cryptocurrency as intangible property or a commodity.

 » Read more

Is Blockchain Technology in Your Company’s Future?

We believe the answer to the above question is, quite simply, “Yes.” Perhaps the more relevant question is, “when and how will Blockchain technology become part of my daily reality?” This question is harder to answer.

What is Blockchain Technology?

Unless you are following, or using, a cryptocurrency like Bitcoin or Ethereum, you may not know that Blockchain is the underlying technology that drives those digital currencies. To grasp this concept more easily, you can think of Blockchain as the operating system, like a phone or tablet, and of Bitcoin as an app on that phone or tablet.

Blockchain technology represents the coming together of several technologies and ideas that have the potential to solve many problems.

 » Read more

Media Contact

Dustin VandeHoef
Marketing Manager
Clark Nuber
Phone: 425-454-4919
Contact Dustin