As digital assets continue to grow in popularity, so does the oversight from the Internal Revenue Service (IRS). Have you done any of the following with digital assets:

• Donated directly to a 501(c)(3) organization
• Gifted more than the IRS limits
• Converted to cash
• Converted from one crypto to another
• Purchased goods or services
• Accepted payment and/or paid someone in crypto
• Mined crypto
• Earned staking rewards, airdrops, or received crypto from a hard fork

If so, you may have tax reporting requirements. Whether it is gift tax reporting, ordinary income, or short-term/long-term capital gains, there could be tax implications. But the real question is, do you know the cost basis of your assets?

At AZLA, your success is our business. We dedicate ourselves to your needs.

Our full-service accounting firm is large enough to provide first-class professional service,

but small enough to spend the necessary time

to understand our clients’ needs and personalized, individual service.