Email a copy of 'Sellers: Be Ready for New IRS Tax Question on Virtual Payments' to a friend
Loading ...
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.
This is confusing to me. What are digital assets?
I am a seller of apparel, but this is not digital.
The wording is confusing to me. I am not sure what to answer on this.
Using the word digital i think of phones or downloaded music ???
“… virtual currency reporting requirements.”
..for my virtual sales.
@LAlex – click through to the IRS announcement and it states:
What is a digital asset?
A digital asset is a digital representation of value which is recorded on a cryptographically secured, distributed ledger. Common digital assets include:
Convertible virtual currency and cryptocurrency
Stablecoins
Non-fungible tokens (NFTs)
Hope that helps.
@LAlex
The best way to explain a digital asset is that they are not physical or tangible objects like apparel and consumer electronics are.
Commonly purchased for their investment potential, the items that Ina has listed in her post are all intangible products that exist in a digital or virtual (i.e., in essence rather than in actuality) state.
Fairly new insofar as investment and payment vehicles go, as is the case with the other earnings that an individual garners, the IRS is now finding itself having to clarify that profits generated through the purchase, sale, and/or trade of digital assets is subject to income tax reporting.