Today we’re diving into the intricate world of cryptocurrency tax with our guest, tax expert Matthew Foreman, Partner and co-chair of Falcon Rappaport & Berkman’s Taxation Practice Group. We explore challenges and solutions for handling large volumes of crypto transactions, emphasizing the importance of accurate record-keeping to avoid IRS scrutiny. Our conversation covers the intricacies of wash trading and its implications in the crypto market, the tax treatment of crypto as property, and the pressing need for comprehensive regulation from Congress. We also discuss the logistical challenges of tracking numerous trades and the potential impact of new legislation on the crypto space.

Together, we’ll delve into real-world tax implications on cryptocurrency regulation. Like and subscribe to stay informed about the latest in web3 and crypto tax compliance!

Matt is the host of Falcon Rappaport & Berkman’s podcast How Tax Works, where he unravels the complexities of tax law. Learn more:
https://frblaw.com/podcast-category/how-tax-works/

Follow our guest:
https://x.com/ForemanTaxLaw
https://x.com/HowTaxWorks

 

Chapter Markers:

00:00 Welcome to Block & Order: Special Tax Episode featuring Matt Foreman

05:30 Taxation on currencies vs. Bitcoin

07:37 Capital gains tax treatment for cryptocurrency transactions

12:35 Political shift in crypto regulation

15:33 Should legislative action be pursued now or later for tax issues?

16:41 Concerns about rushed, ineffective legislation, and the need for Congress to take focused action on tax

20:47 APA requires hearings

24:06 The impact of regulatory legislation, concerns and implications of broad legislation

27:10 Wash sales

29:58 Economic perspective, risk assessment and timeframe for selling assets

35:03 Facing and preparing for IRS audits for cryptocurrency activity

41:11 HIFO, FIFO, LIFO

49:00 Tech innovation takes time

52:12 Staying cautious

 

Watch or listen to the podcast here:

   

Please note that this show is meant for informational and entertainment purposes only. This is not legal advice. Please hire your own attorney. The hosts or guests appearing on Block and Order may hold cryptocurrency, NFTs, or other digital assets from companies mentioned during our programming. This possession of digital assets does not constitute a professional endorsement, legal advice, or financial advice. Listeners are encouraged to consult with their own legal and financial advisors for personalized guidance in the blockchain and cryptocurrency space.