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Digital Assets

Digital Asset Insights

September 13, 2021 Jay Laurila

Tax Implications of Regulated Investment Companies Investing in Digital Assets

As cryptocurrencies, such as Bitcoin and Ethereum, become more prevalent and developed as an asset class, the questions of if and how regulated investment companies (RICs) can gain exposure are becoming more common. In particular, there are a number of tax issues and complexities RICs and their...

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August 17, 2021 Marie Brilmyer

Private Companies Focus on Lease Accounting, ERC and Cryptocurrency in Webinar Series

This year’s 2021 Virtual Summer CPE Series was another great way for us to reach out and help our private company clients stay on top of important issues for their businesses. We are grateful for everyone who joined us over the past couple of months, giving us the chance to speak and answer...

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March 12, 2021 Jamie Gasiorowski

6 Basic Areas of Compliance Investment Advisers Managing Digital Assets Need to Focus On

In its latest risk alert released on February 26, 2021, the Division of Examinations (formerly known as the Office of Compliance Inspections and Examinations) offers its observations regarding digital asset securities after examining investment advisers, broker-dealers and transfer agents.One of...

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March 04, 2021 Corey McLaughlin, Robert Velotta

What Registered Funds Need to Know About Investing in Digital Assets

As registered funds show increased interest in the digital asset market — whether they are looking to create a new ETF product or simply to gain more exposure to this asset class — a foundational understanding of this evolving space will be critical before moving forward with any type...

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March 02, 2021 Josh Lefcowitz

3 Key Considerations in the Valuation of Partially Illiquid Cryptoassets

For those of you who’ve been through multiple crypto market cycles, extended bear markets can seem to take years off your life. But the relatively recent excitement surrounding bitcoin and other cryptoassets (and correlated price appreciation) has been a worthy vindication of your tireless...

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December 17, 2020 Brandon Miller

Answers to 5 Key Questions about Digital Asset Staking and Minting Taxation

Recent trends in the cryptocurrency marketplace have indicated an increased interest in activities connected with Proof of Stake (PoS) cryptocurrencies, whether used with the intent of receiving regular income from PoS rewards or engaging in other income generating activities in a decentralized...

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August 17, 2020 Matt Rager

The Intersection of Cryptocurrencies and Individual Taxation – Part II

Part I of this blog post offered background on cryptocurrencies, including the different types, how to value them, and how they generally are taxed at the individual level. This post will discuss more specific strategies related to types of taxation, strategies to minimize tax and how to keep...

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February 11, 2020 Jeff Megaro

Considerations for Fund Managers Calculating Incentive Fees Involving Liquid and Illiquid Investments

It is hard to overstate the ingenuity and volatility experienced through the digital markets since the first cryptocurrency, Bitcoin, was created in 2009. That volatility, and possibly the limited investor base, has created a unique situation for investment companies holding digital assets &mdash...

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October 10, 2019 Cynthia Pedersen

IRS Releases Anticipated Cryptocurrency Tax Guidance

After IRS Commissioner Charles Rettig’s comments on May 30, 2019, practitioners and investors waited anxiously for additional guidance clarifying the tax treatment of cryptocurrency. On October 9, 2019, the IRS released the much anticipated guidance in Revenue Ruling 2019-24 and an outline...

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August 21, 2019 Cynthia Pedersen

New IRS Enforcement Letters Issued to Cryptocurrency Holders

In early August, the IRS began issuing Notice CP2000 to advise taxpayers owning virtual currency that the income or payment information the IRS received from independent third-party sources does not match the virtual currency income information reported on taxpayers’ federal income tax...

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