Crypto

It’s Tax Time Again. Do We Really Know What That Means for Crypto?

April showers are falling, the spring flowers are blooming once more, and the deadline to file 2021 tax returns is just around the corner – but this year, many Americans are facing more complicated tax questions than ever before.

Blame for the complicated tax picture can be spread around. For example, COVID-19 tax breaks and stimulus payments had tax implications of their own, and work from home and remote work mean that more of us are working multiple jobs with a more complicated income picture.

Yet some of the blame has to be placed on the surging popularity of digital assets and decentralized finance (DeFi) strategies that use those assets to generate income – and on the lack of clarity on how such assets and income should be treated for tax purposes.

This article originally appeared in Crypto for Advisors, CoinDesk’s weekly newsletter defining crypto, digital assets and the future of finance.

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