Digital Asset Tax Notes
Cut through the noise. Stay up to date on IRS changes, tax tips, and best practices for crypto and digital-asset holders.
Digital Asset Tax Education in Plain English.
Articles on how federal tax law treats crypto and other digital assets: when a token swap is a taxable sale, wallet-level basis under Rev. Proc. 2024-28, ordinary versus capital treatment, and whether the IRS can lien or levy your holdings.
Can the IRS Lien or Seize Your Crypto?
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…
Notice 2014-21 in 2026: Why It Still Controls Digital-Asset Tax Treatment
Notice 2014-21, published on March 25, 2014, is the foundational IRS guidance on digital-asset taxation. The Notice answered sixteen questions about the…
Ordinary vs Capital: When Each Applies to Digital-Asset Transactions
Character classification — ordinary versus capital — controls the rate at which digital-asset income is taxed under IRC §1(h) and §1, determines which…
Token-to-Token Swap as a Realization Event: IRC §1001 in Practice
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…
Wallet-Level Basis Under Rev. Proc. 2024-28: What Changed and What to Track Starting 2025
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…