How digital assets are taxed is poorly understood by clients and advisors alike
Advisors—many of whom are still struggling to reckon with the mere existence of cryptocurrencies—are increasingly facing the terrifying prospect of figuring out how to plan with, and for, them. Although crypto currency has the word “currency” in the name, it’s misleading. “As with other investments, like stocks, the IRS views cryptos as property,” says Joel Revill, CEO of Two Ocean Trust LLC in Wyoming. This distinction is important, as it means that cryptos are subject to capital gains taxes.