Tax Treatment of NFTs | CLE/CPE Course

BarbriSFCourseDetails

Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Law

Date & Time

event Date
Wednesday, November 9, 2022
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
90 minutes

Credit Information

This 90-minute webinar is eligible in most states for 1.5 CLE credits.
BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00

CLE

CPE

ALL

This CLE/CPE course will provide tax counsel, accountants, and other advisers with critical analysis, non-fungible token (NFT) tax treatment, and reporting obligations for taxpayers and investors. The panel will discuss the difference between NFTs and other cryptocurrencies, IRS rules, and define proper reporting and tax treatment for NFTs.

Faculty

Jonathan Kalinski

Principal

Hochman Salkin Toscher Perez, PC

Mr. Kalinski specializes in both civil and criminal tax controversies as well as sensitive tax matters including disclosures of previously undeclared interests in foreign financial accounts and assets and provides tax advice to taxpayers and their advisors throughout the world. He handles both federal and state tax matters involving individuals, corporations, partnerships, limited liability companies, and trusts and estates. Mr. Kalinski has considerable experience handling complex civil tax examinations, administrative appeals, and tax collection matters. Prior to joining the firm, he served as a trial attorney with the IRS Office of Chief Counsel litigating Tax Court cases and advising revenue agents and revenue officers on a variety of complex tax matters.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Jordan Bass

Founder

Taxing Cryptocurrency

Mr. Bass is a both a Certified Public Accountant (CPA) and a tax lawyer, and is the founder of Taxing Cryptocurrency. He has an extensive background in financial accounting and taxation and is one of the leading crypto tax and accounting authorities for entrepreneurs and investors in the cryptocurrency and blockchain ecosystem. Mr. Bass leverages his in-depth knowledge of the crypto market with his tax expertise to help clients understand cryptocurrency tax and accounting implications while aiming to take the uncertainty out of planning and filing crypto taxes.

In addition to his work at Taxing Cryptocurrency, Mr. Bass is also the Accounting Manager for Horizen (formerly ZenCash), a privacy-oriented cryptocurrency that aims to enable an application-rich and inclusive ecosystem that provides people with complete control of their digital footprint.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

The recent explosion of the creation and sale of NFTs has brought about significant concerns regarding the taxation of these transactions for sellers, purchasers, and investors. Tax counsel and accountants for clients holding and selling NFTs must understand applicable tax rules, reporting requirements for these transactions, and the tax treatment of NFTs.

An NFT is a digital certificate of certain rights associated with a digital or physical asset. Thus far, NFTs have been created and sold for various assets within the art, music, and sports industries worldwide. However, since NFTs and NFT transactions are relatively new, the IRS has yet to issue guidance directly addressing NFTs. This forces taxpayers to rely on general tax law principles and current IRS guidance on digital assets and virtual currency.

NFTs are typically acquired in exchange for virtual currency and, as such, are treated as property resulting in recognition of gain or loss on the taxpayer. However, the characterization of an NFT and related transactions can depend on how the transactions are facilitated. If an NFT is treated as a collectible versus a digital asset, it can result in different tax treatment (i.e., a primary transfer may be considered a license, while a secondary market transfer is regarded as a sale).

Tax counsel and advisers must recognize applicable tax rules for NFTs, distinguish differences to cryptocurrencies, and define proper reporting and tax treatment for NFT transactions.

Listen as our panel discusses critical tax considerations for NFT transactions, tax issues for creators and investors, and other essential issues for NFTs.

Outline

Overview of NFTs
Applicable tax rules
Characterization of NFTs and NFT transactions
Treatment of costs for creating NFTs
Reporting and compliance
State and local tax considerations

Benefits

The panel will review these and other key issues:

How are U.S. tax rules applied to NFTs and NFT transactions?
What characterization issues arise for NFTs under current tax law?
Are the costs associated with the creation of NFTs deductible?
What are the reporting requirements and compliance pitfalls for NFTs and NFT transactions?
What are the state and local tax challenges of NFT transactions?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Identify tax rules applicable to NFT transactions
Ascertain a complete understanding of the characterization of NFTs under current tax law
Recognize key reporting requirements and tax compliance issues related to NFTs and other digital assets
Ascertain methods in minimizing tax implications of NFT transactions

Field of Study: Taxes
Level of Knowledge: Intermediate
Advance Preparation: None
Teaching Method: Seminar/Lecture
Delivery Method: Group-Internet (via computer)
Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
Prerequisite: Three years+ business or public firm experience preparing income tax forms and schedules at mid-level within the organization, supervising other preparers/accountants. Specific knowledge and understanding of sale and exchange transactions; familiarity with virtual currency structures, foreign information reporting requirements.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.