Tax,
Banking
Apr. 12, 2022
Can the IRS collect tax on crypto if you don’t own it?
Anytime you are playing with ownership and who really owns what, be careful, and be realistic. You really shouldn’t have to pay tax on something that is not beneficially yours.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
In 2014, the IRS announced that cryptocurrency is property for federal tax purposes, and the massive tax agency has never retreated from that position. That means that just about any transfer can trigger taxes. In the early days, creative crypto traders swapped different kinds of crypto and many argued that was nontaxable, and exchange qualifying under section 1031 of the tax code. But since 2018, a crypto for crypto exchange cannot qualify as a tax-free 1031 exchang...
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