by Noah Green CPA CFE | Jul 8, 2026 | Sheepdog Tax Digital Asset Tax Notes
By Noah Green, CPA, CFE, for Sheepdog Tax. The short version Yes. Crypto does not sit outside the tax collection system just because it lives on a blockchain. For federal tax purposes, the IRS treats virtual currency as property, and the federal tax lien attaches to...
by Noah Green CPA CFE | Apr 28, 2026 | Sheepdog Tax Digital Asset Tax Notes
Notice 2014-21, published on March 25, 2014, is the foundational IRS guidance on digital-asset taxation. The Notice answered sixteen questions about the federal-tax treatment of “virtual currency” in a format that has not been formally updated in the...
by Noah Green CPA CFE | Apr 21, 2026 | Sheepdog Tax Digital Asset Tax Notes
Character classification, ordinary versus capital, controls the rate at which digital-asset income is taxed under IRC §1(h) and §1, determines which net-loss limitations apply under IRC §1211, and triggers the §1411 net investment income tax on most capital-gain...
by Noah Green CPA CFE | Apr 14, 2026 | Sheepdog Tax Digital Asset Tax Notes
A taxpayer who exchanges one digital asset for another, ETH for USDC on a centralized exchange, ETH for cbETH on a liquid-staking protocol, USDC for DAI through a decentralized exchange, or any of the dozens of similar transactions a typical wallet executes in a year,...
by Noah Green CPA CFE | Apr 7, 2026 | Sheepdog Tax Digital Asset Tax Notes
Rev. Proc. 2024-28 changes how digital-asset basis must be tracked for any taxpayer with units acquired in more than one wallet, exchange account, or custodial location. Starting January 1, 2025, basis is tracked wallet-by-wallet, not pooled across the...
