New Bloomberg Tax Portfolio Explores the Challenges of Cryptocurrency

Arlington, Va. (January 31, 2019) — Bloomberg Tax today announced the availability of Taxation of Cryptocurrencies, a new Tax Management Portfolio authored by Jim Calvin, tax partner,  Deloitte Tax LLP. This treatise will give tax practitioners a firm understanding of the federal income tax treatment of bitcoin and the unique and challenging tax aspects of cryptocurrency.

The cryptocurrency market has undergone explosive growth and is now estimated at over $200 billion. However, the federal government has been largely silent on its tax treatment with the exception of a 2014 Internal Revenue Service notice. This Portfolio fills that information void, helping cryptocurrency investors, traders, dealers, merchants and miners, and advisors understand how to classify bitcoin and other virtual currencies for federal tax purposes and lays out issues tax practitioners should be aware of when advising their clients about cryptocurrency matters. It also details the background and history of bitcoin and critical aspects of bitcoin derivative and investment products; bitcoin trading and lending; offshore, private, and retail funds; and global dealing and trading in bitcoin.

“Bitcoin is an ingenious financial asset and is on its way to being adopted by Wall Street. Long, short, leveraged, future, forward, and swap positions can all be taken in bitcoin,” said Jim Calvin. “Liquidity and product scope will continue to attract dealers and banks, exchanges, investment managers, and traders. This Portfolio is the result of our years advising these types of businesses on Bitcoin’s new, novel, and unique tax issues.”

“The tax consequences of trading and investing in bitcoin are complex and advisors are increasingly fielding questions about federal tax treatment of cryptocurrencies,” said George Farrah, Editorial Director, Bloomberg Tax. “We’re grateful for the contribution of Jim Calvin, an esteemed practitioner whose practical expertise in this emerging area allowed him to create this Portfolio offering the most comprehensive analysis and practical guidance available today.”

To learn more about Bloomberg Tax, please visit http://onb-tax.com/f5Zr30nwdvY.