Taxpayers who hold virtual currency positions may be subject to the tax straddle rules that require them to defer losses on one offsetting position to the extent of unrecognized gain on other offsetting positions. This article explores guidance (or the lack thereof) relating to actively traded personal property, offsetting positions and other issues as applied to virtual currency holdings.
When Virtual Currency Positions Are Subject to the Straddle Rule
By McDermott Will & Emery on August 21, 2020
Posted In IRS Guidance, Tax Reform