Q&A of Week March 29, 2023

Question

In regards to the question on the 2022 tax return about digital assets, what is considered to be a digital asset?

Answer

A digital asset is not real currency, but it has an equivalent value in real currency. Digital assets include (but are not limited to):

• Cryptocurrency and convertible virtual currency

• Stablecoins

• Non-fungible tokens (NFTs)

You can learn more about digital assets from the IRS here: https://www.irs.gov/businesses/small-businesses-self-employed/digital-assets

If you have digital assets or have questions about what needs to be claimed on your income tax return, consult with a tax professional.