Document Type
Article
Publication Date
6-2024
Abstract
In “Coinbase: Are Cryptoassets Securities?” Tax Notes contributing editor Lee A. Sheppard highlights a recent district court decision indicating that some forms of cryptoassets are securities for securities law purposes and therefore fall under the jurisdiction of the SEC:
There are potential tax ramifications. Some, indeed many, cryptoassets could be securities under the securities law. That means that losses can’t be recognized on wash sales (section 1091). The IRS should issue a notice stating that many cryptoassets other than bitcoin are securities, so losses on wash sales can’t be recognized. A notice would not be a heavy lift. The taxpayers involved are sophisticated. It’s a matter of tax fairness when the same IRS — which isn’t empowered to make decisions about fairness — is beating less affluent taxpayers over the head about stupid little things. . . .
Recommended Citation
Avi-Yonah, Reuven S. "Now You Have It, Now You Don’t: Taxing Crypto, Part 2." Tax Notes International 114, no. 11 (2024): 1655-1658.
Comments
Reprinted with the permission of Tax Analysts.