Are you being paid in digital assets?

Be sure to report payments correctly on your tax return. The IRS gives this example: You’re a self-employed attorney who performs services for a client and receives one unit of digital asset A valued at $10,000. You must report $10,000 as self-employment income. Later, when the value of the unit is $12,000, you sell it. For tax purposes, you have a $2,000 capital gain (the difference between your basis in the unit of $10,000—what was already reported as income—and what you received); the gain is reported on Form 8949. Note: Digital assets are “cash” for purposes of reporting the receipt in a business of over $10,000 on Form 8300, but the IRS postponed reporting on this form for digital assets until regulations are issued. #IdeaoftheDay