Paul Magrath, Huawei Technologies Canada Co., Ltd.
Cryptocurrency is edging into mainstream business transactions, yet, to many, the concept of a decentralized digital asset remains complex and murky. The taxation of crypto-based transactions is even more unsettled, creating a new area of uncertainty for in-house tax professionals. This session is designed to introduce participants to cryptocurrency and the tax issues this new medium of exchange presents. Panelists will outline the basic concepts surrounding cryptocurrency and blockchain technology and provide participants with a working vocabulary of key terms necessary to understand relevant tax and financial accounting guidance. Panelists will then overview relevant IRS guidance and key issues that arise when analyzing the tax treatment of crypto-based transactions. After building this background of knowledge, panelists will shift to analyzing tax and financial accounting considerations of acquiring cryptocurrency through purchase, in exchange for goods or services, and by contribution; holding cryptocurrency; and disposing of cryptocurrency.
Learning Objectives: After this session, participants will be able to:(1) Understand fundamental concepts surrounding cryptocurrency and blockchain technology, (2) including key terms used in relevant tax and financial accounting guidance; (3) Identify the tax and financial accounting issues that arise when analyzing the tax treatment of crypto-based transactions; (4) Gain insights into the tax and financial accounting considerations of acquiring, holding, and disposing of cryptocurrency.