Cryptocurrency & Digital Asset Taxation

Navigate the complex and evolving tax rules for cryptocurrency, NFTs, DeFi, and other digital assets. Covers reporting requirements, cost basis methods, wash sale considerations, and IRS enforcement priorities.

8 Units

Early Units (Foundation)

Building Skills

Advanced Concepts

Capstone/Synthesis

How the IRS Classifies Digital Assets

The IRS treats cryptocurrency as property, not currency. This classification drives every tax consequence that follows.

20 minutes

Taxable Events and Reporting

Not every interaction with cryptocurrency creates a tax obligation. Practitioners must distinguish between taxable events and non-events to ensure accurate reporting.

25 minutes

Cost Basis Methods

When a client holds multiple lots of the same cryptocurrency purchased at different times and prices, the method used to determine which lot is being sold can dramatically affect the tax outcome.

25 minutes

DeFi Transactions

DeFi represents the most challenging area of cryptocurrency taxation because the IRS has issued almost no specific guidance. Practitioners must apply general tax principles to novel transaction types.

30 minutes

NFTs — Creation, Sales, and Royalties

NFTs present distinct tax issues depending on whether your client is a creator or a collector. The distinction determines the character of income, the applicable tax rate, and self-employment tax exposure.

20 minutes

Mining and Validator Income

Cryptocurrency mining generates taxable income. The threshold question is whether the activity constitutes a trade or business, which determines self-employment tax exposure and expense deductibility.

25 minutes

IRS Enforcement

The IRS has made cryptocurrency compliance a top enforcement priority. Practitioners must understand enforcement mechanisms to properly advise clients, including those who may have underreported in prior years.

25 minutes

International Reporting

Taxpayers who hold cryptocurrency on foreign exchanges face international reporting requirements that carry severe penalties for non-compliance. The most significant is the FBAR, filed as FinCEN Form 114.

25 minutes

Learning Progression

This course is designed to be taken sequentially. Earlier units establish foundational concepts that later units build upon. While you can explore units in any order, following the numbered sequence provides the most coherent learning experience.