Cryptocurrencies have dominated headlines over the past few years. Despite their popularity, regulators have struggled to define cryptocurrencies within the established paradigm. As a result, regulations and guidance from the governing bodies are sparse. Despite the Wild West environment, crypto is subject to income tax, and financial service providers must understand the ramifications of their clients’ activities. This article provides an introduction to the crypto world, its terminology, the application of the tax code, and the current and anticipated regulations pertaining to cryptocurrencies.
Author: Michael W. Valenti, CPA, CFP, MAcc, discovered his love of high-net-worth individual tax planning and compliance while in the integrated masters of accounting program at Penn State. Offering a unique view of tax and financial planning as an in-house tax professional in the wealth management industry, Michael has been published in multiple industry publications. He currently serves as the senior tax planner for CI Private Wealth–Family Office Services, based in Wayne, PA.
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