Deloitte's Rob Massey Discusses Bitcoin Tax Rules and IRS Guidance

Bitcoin tax rules have evolved, but the self-assessment system remains unchanged. Rob Massey from Deloitte highlights the implications of using Bitcoin as money for reporting purposes, clarifying which wallet transactions are realization events. He emphasizes that 1099 forms from brokers will not provide a complete tax picture. Massey advises Bitcoin investors to report all transactions, regardless of size, as no de minimis exemption has been established. He notes that the IRS monitors all on-chain activities, including taxable transactions like paying service providers. Business leaders are currently inquiring about ETFs, leverage, and Bitcoin lending. Massey suggests that the Treasury should provide clearer guidance on lending, character, and basis. He also discusses the lack of tax treaties for cross-border Bitcoin transactions and how multinationals differentiate between Bitcoin and stablecoins in payment corridors. Lastly, he addresses the importance of documenting cost basis for unreported transactions, such as the infamous 2015 pizza purchase.

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