IRS regulates Digital Assets sales,
Beginning of
wallet-by-wallet tax accounting | Whitepaper by Crypto Backoffice
This whitepaper covers an in-depth analysis of IRS Revenue
Procedure 2024-28 for digital asset reporting.
It covers aspects such as applicability
of regulations and how taxpayers should act before January 1, 2025.
IRS regulates Digital Assets sales, Beginning of wallet-by-wallet tax accounting.
This applies to you if you are associated with digital assets in below capacities:
- Owner
- Fund Manager
- Auditor/CPA/Tax Preparer
- Fund administrator/service provider
- Wallet Custodian
This could impact:
- Profit/(Loss) computations from digital assets sales
- Taxes
Before 1/1/2025, you need to:
- Determine and identify the cost of all your digital assets holdings.
- Allocate the cost of your unsold digital assets holdings to existing units held under custody of different wallets.
- Assess if your current digital asset accounting software and tax reporting process can manage the new wallet-by-wallet tax accounting.