The complexity of applying current tax rules to new concepts in crypto like mining, staking, lending, multi-wallet aggregation, Web3 gaming, NFT purchases and “yield farming,” can lead to significant errors or omissions. TaxWeek, sponsored by koinly
A common thread has persisted throughout the market swings, technological innovations and novel use cases that define the rise of crypto: taxes. The industry’s exciting new concepts and vernacular can leave one overwhelmed and confused. Then quickly comes the realization … this is all subject to tax?
The complexity of applying current tax rules to new concepts in crypto like mining, staking, lending, multi-wallet aggregation, Web3 gaming, NFT purchases and “yield farming,” can lead to significant errors or omissions. However, we’ve seen more attention and proposed legislation in the last 12 months than in any other period in the digital asset era. Further still is the evolved view in recent legislative proposals , that extends provisions historically reserved for commodities, securities or currencies to digital assets without necessarily classifying crypto as any of these existing asset classes.
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