Claiming Digital Assets on Your Tax Return
As digital assets continue to gain traction, it’s crucial to understand their tax implications. If you own or trade convertible virtual currencies, cryptocurrencies, stablecoins, or non-fungible tokens (NFTs), you are required to report any related income on your 2024 federal income tax return.
What Are Digital Assets?
The IRS defines digital assets as electronically stored assets that can be bought, sold, transferred, or traded.
These include: ✅ Cryptocurrencies (e.g., Bitcoin, Ethereum) ✅ Stablecoins (e.g., USDC, Tether) ✅ NFTs (digital collectibles and tokens)
What You Need to Do
If you had digital asset transactions in 2024, ensure you keep records of:
📌 Purchases and receipts 📌 Sales and exchanges 📌 Transfers and dispositions
The IRS is tightening regulations around digital assets, so proper record-keeping is key to ensuring compliance and accurate tax reporting.
Need help navigating tax rules for digital assets? Verity CPAs can guide you through the process. Contact us at info@verity.cpa or 808.546.5026 for expert assistance.
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