November 2022

Tracking Digital Assets on Your 2022 Form 1040

The IRS is gearing up to get their share of digital profits. Not only are they requiring brokerage companies to report sales of digital assets, but now their is a new check box on the upcoming tax forms. When you do your taxes for 2022 next spring, you must check “yes” or “no” to the digital asset question on the front of Form 1040.

Digital assets are digital representations of value that are recorded on a cryptographically secured distributed ledger or similar technology. Examples of digital assets are: