Two crypto tax experts, Shehan Chandrasekera, certified public accountant and head of strategy, Tax, at Cointracker, and John Cardone, senior director of Washington National Tax at RSM US LLP, explain everything crypto traders need to understand when filing taxes for 2021. Show topics:
- the five types of transactions that constitute a taxable crypto event
- how NFT taxes should be reported
- why the sale of collectibles (NFTs) is taxed differently than the sale of crypto property (tokens)
- what type of forms you might receive from crypto exchanges and why this information is usually incomplete
- why the crypto provision in the infrastructure bill most likely won’t affect retail traders
- why John wants a digital asset-specific 1099 form
- how staking income will be taxed this year (and why this might change soon)
- how to report taxes for…
- airdrops like ENS and SOS
- income earned via a play-to-earn game like Axie Infinity
- the sale of virtual land
- wrapping Bitcoin onto Ethereum
- rewards received via a crypto credit card
- how to save money on taxes going forward
- how Shehan and John think crypto taxes will evolve
- why the IRS listed a job posting for someone who could exploit crypto wallets
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Episode Links
John Cardone
Shehan Chandrasekera
Helpful Links
- Shehan’s tax guide: https://www.forbes.com/sites/shehanchandrasekera/2022/01/24/quick-guide-to-filing-your-2021-cryptocurrency–nft-taxes/?sh=d5c00f765f9d
- Staking rewards case: https://twitter.com/TheCryptoCPA/status/1489268205877035016
- US Gov. job posting: https://sam.gov/opp/799a1650bd5349b6af4f646842999187/view
2022 Crypto Tax Guides