Unchained

Your 2021 Crypto Taxes: How to Handle NFTs, DAOs, Airdrops and More - Ep.320

Feb 15, 2022
Guest
John Cardone
Guest
Shehan Chandrasekera
Shehan Chandrasekera, a CPA and tax strategist at Cointracker, and John Cardone, a tax controversy expert at RSM US LLP, dive into the complex world of crypto taxes for 2021. They discuss the five taxable crypto transactions and how NFTs differ in taxation. The duo explains the importance of accuracy in reporting and the potential changes stemming from new regulations. They also touch on reporting airdrops, staking income, and the evolving landscape of crypto taxation, emphasizing strategies to minimize tax liabilities.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
ADVICE

Taxable Crypto Events

  • Understand the five taxable crypto events: cashing out, crypto-to-crypto trades, spending crypto, earning crypto, and forks/airdrops.
  • These events trigger taxes due to cryptocurrency's classification as property by the IRS.
ADVICE

NFT Taxes Overview

  • Account for NFT taxes as a creator or trader, similar to cryptocurrencies.
  • Consider the collectible nature of some NFTs, which may be subject to a higher tax rate.
INSIGHT

NFT as Access Keys

  • NFTs used solely for access or authentication, like DAO entry, are not taxable events initially.
  • However, selling those NFTs later, especially if their value changes, can be a taxable event.
Get the Snipd Podcast app to discover more snips from this episode
Get the app