Study Guide/Outline  for Tax Treatment of Virtual Currency

The study guide is provided to give you an overview of the course material.

Course material is the text “Tax Treatment of Virtual Currency.”

Chapter 1 – Nature of Virtual Currency

When you have completed this chapter, you should be able to:

  • Describe virtual currency;
  • Explain how central bank digital currency (CBDC) is used;
  • Recognize how stablecoins differ from unbacked cryptocurrency;
  • Describe how virtual currency networks maintain security; and
  • Recognize how blockchain is employed with respect to virtual currency transactions.

Chapter 2 – Tax Treatment of Virtual Currency

When you have completed this chapter, you should be able to:

  • Calculate the adjusted cost basis of virtual currency that is purchased, mined, or received as a gift;
  • Calculate the adjusted cost basis of virtual currency that is Apply existing tax law to transactions involving virtual currency;
  • Describe the tax treatment of virtual currency given as a charitable gift; and
  • Recognize the tax treatment given virtual currency when less than all is sold, exchanged, or otherwise disposed of.