As appearing in IRS Tax Tip 2024-21 Taxpayers filing 2023 tax returns must check a box indicating whether they received digital assets as a reward, award or payment for property or services or disposed of any digital asset that was held as a capital asset through a sale, exchange or transfer. A digital asset is a digital representation of value that is recorded on a cryptographically secured, distributed ledger or any similar technology. Common digital assets include virtual currency and cryptocurrency, stablecoins and non-fungible tokens. Examples of digital assets transactions include: Sale of digital assets. Receipt of digital assets as payment for goods or services. Receipt of new digital assets because of mining and staking activities. Receipt of new digital assets because of a hard fork. Exchange of...

As reported via IRS Tax Tip 2023-45  on 4/5/2023 All taxpayers that filed a 2022 tax year Forms 1040 and 1040-SR were required to check a box indicating whether they received digital assets as a reward, award or payment for property or services or disposed of any digital asset that was held as a capital asset through a sale, exchange or transfer. Examples of digital assets transactions include: A sale of digital assets. The receipt of digital assets as payment for goods or services provided. The receipt or transfer of digital assets for free, without providing any consideration, that does not qualify as a bona fide gift. The receipt of new digital assets as a result of mining and staking activities. The receipt of new digital assets...