Virtual Currency Taxation

Most virtual currency transactions involving a sale or exchange will have a taxable outcome. In the Virtual Currency Taxation manual, we describe the basics of virtual currencies, and then delve into the cost basis of virtual currency, followed by the tax status of a number of virtual currency transactions. These transactions include virtual currency paid for services rendered, exchanges of property for virtual currency, charitable gift situations, and airdrop distributions. The manual also covers IRS transaction recordation and reporting requirements.