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Tax Treatment of Virtual Currency

Exam Questions: 10
Course Level: Basic
Pages: 50 | Content: 40, Supplemental: 10
NASBA Area of Study: Taxes
Not Acceptable for: N/A
Version: 8130

Virtual currency use is increasing, and roughly 3 in 10 Americans younger than age 30 indicate they have invested in, traded, or used a virtual currency, such as Bitcoin or Ethereum. As a result, tax preparers are more likely than ever to encounter clients who have engaged in one or more virtual currency transactions during the year and who may have taxable income as a result. Tax Treatment of Virtual Currency briefly discusses the nature of virtual currency, how transactions in virtual currency occur and are recorded, and the tax treatment to which they are subject. All course material provided. No prerequisites. Course level: Basic.

EA Program Approval Number: ZX34G-T-00472-22-S

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Course Information

Table of Contents
  • Nature of Virtual Currency
  • Tax Treatment of Virtual Currency
Objectives
  • To recognize virtual currency
  • To recall how central bank digital currency (CBDC) is used
  • To recognize how stablecoins differ from unbacked cryptocurrency
  • To recall how virtual currency networks maintain security
  • To recognize how blockchain is employed with respect to virtual currency transactions
  • To identify how to calculate the adjusted cost basis of virtual currency that is purchased, mined, or received as a gift
  • To recall the tax treatment of virtual currency given as a charitable gift
  • To recognize the tax treatment given virtual currency when less than all is sold, exchanged, or otherwise disposed of

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