Cryptocurrency isn’t new, but when it comes to taxation, there are still many unanswered questions. One of the many complex questions about crypto is how it’s defined. It doesn’t fit neatly into a category with other taxable assets, such as stocks, securities, commodities, or other digital assets. Without a definition, it can be uncertain how existing tax regulations apply to it, which poses challenges for those who hold and trade crypto. The definition of this evolving asset would indicate which tax code provisions apply, including such questions as when losses and expenses are deductible. The IRS plans to address these complex issues in forthcoming regulations. Contact us with questions. © 2022
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