Bookmark and Share [ [link removed] ]

a { color:#0073AF !important;} a:hover { color:#004673 !important;}
IRS.gov Banner
IRS Tax Tips April 5, 2023

Useful Links:

IRS.gov [ [link removed] ]

Help For Hurricane Victims [ [link removed] ]

________________________________________________________________________

News Essentials

What's Hot [ [link removed] ]

News Releases [ [link removed] ]

IRS - The Basics [ [link removed] ]

IRS Guidance [ [link removed] ]

Media Contacts [ [link removed] ]

Facts & Figures [ [link removed] ]

Around The Nation [ [link removed] ]

e-News Subscriptions [ [link removed] ]

________________________________________________________________________

The Newsroom Topics

Multimedia?Center [ [link removed] ]

Noticias en Espa?ol [ [link removed] ]

Radio PSAs [ [link removed] ]

Tax Scams/Consumer Alerts [ [link removed] ]

The Tax Gap [ [link removed] ]

Fact?Sheets [ [link removed] ]

IRS Tax Tips [ [link removed] ]

Armed Forces [ [link removed] ]

Latest News [ [link removed] ]

________________________________________________________________________

IRS Resources

Contact?Your Local IRS?Office [ [link removed] ]

Filing Your Taxes [ [link removed] ]

Forms & Instructions [ [link removed] ]

Frequently Asked Questions [ [link removed] ]

Taxpayer Advocate Service [ [link removed] ]

Where to File [ [link removed] ]

IRS Social Media [ [link removed] ]

?

________________________________________________________________________


Issue Number:? Tax Tip 2023-45

_________________________________________________________

*Understand digital asset reporting and tax requirements*

All taxpayers filing 2022 tax year Forms 1040 and 1040-SR must check a box indicating whether they received digital assets as a reward, award or payment for property or services or disposed of any digital asset that was held as a capital asset through a sale, exchange or transfer.

*Examples of digital assets transactions include*:


* A sale of digital assets.
* The receipt of digital assets as payment for goods or services provided.
* The receipt or transfer of digital assets for free, without providing any consideration, that does not qualify as a bona fide gift.
* The receipt of new digital assets as a result of mining and staking activities.
* The receipt of new digital assets as a result of a hard fork.
* An exchange of digital assets for property, goods or services.
* An exchange or trade of digital assets for another digital asset(s).
* Any other disposition of a financial interest in digital assets.

*Reporting digital assets transactions*


* If the ?yes? box is checked, taxpayers must report all income related to their digital asset transactions.


* Taxpayers should use Form 8949, Sales and other Dispositions of Capital Assets [ [link removed] ], to figure their capital gain or loss and report it on Schedule D (Form 1040), Capital Gains and Losses [ [link removed] ].


* If the transaction was a gift, they must file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return [ [link removed] ].


* If individuals received any digital assets as compensation for services or disposed of any digital assets they held for sale to customers in a trade or business, they must report the income as they would report other income of the same type. For example, they would report W-2 wages on Form 1040 or 1040-SR, line 1a, or inventory or services on Schedule C.

The Instructions for Form 1040 and 1040-SR [ [link removed] ] and the IRS Digital Assets page [ [link removed] ] have more information.

Back to top [ #top ]

?

________________________________________________________________________

FaceBook Logo [ [link removed] ]??YouTube Logo [ [link removed] ] ?Instagram Logo [ [link removed] ]? Twitter Logo [ [link removed] ] ?LinkedIn Logo [ [link removed] ]

________________________________________________________________________

Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov [ [link removed] ].

This message was distributed automatically from the IRS Tax Tips mailing list. *Please Do Not Reply To This Message.*



?

________________________________________________________________________

Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page [ [link removed] ]. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com [ [link removed] ].

This service is provided to you at no charge by the Internal Revenue Service (IRS) [ [link removed] ].


body .abe-column-block {min-height: 5px;} ________________________________________________________________________

This email was sent to [email protected] by: Internal Revenue Service (IRS) ? Internal Revenue Service ? 1111 Constitution Ave. N.W. ? Washington DC 20535 GovDelivery logo [ [link removed] ]
body .abe-column-block { min-height: 5px; } table.gd_combo_table img {margin-left:10px; margin-right:10px;} table.gd_combo_table div.govd_image_display img, table.gd_combo_table td.gd_combo_image_cell img {margin-left:0px; margin-right:0px;}