With all the changes passed in the 2017 tax reform, it was easy to overlook qualified opportunity funds. But investing in a “qualified opportunity fund” (QOF) provides powerful tax benefits. And with new regulations recently issued by the IRS, the rules have begun to take shape. What are the biggest tax benefits? QOFs allow you to: defer paying tax on your capital gain until as late as the end of 2026; reduce your original capital gain tax liability by 15% if you hold your QOF investment at least 7 years (10% if you hold at least 5 years); and exclude any gain from your investment in the QOF if you hold the QOF for at least 10 years. To qualify for…Read more
The recently enacted tax reform creates a new landscape for tax planning. Focusing on the implications for start-ups and private companies in the tech and fintech sectors, I will be giving a talk on Tax Reform for FinTech & Startups tonight. See here for more information. Agenda includes: Overview of major changes in the Tax Reform: lower corporate rates, new passthrough tax deduction, changes to international tax. Introduction to the new Passthrough Tax Deduction: who’s in and who’s out, how to maximize the deduction, what works, and what doesn’t. Combining the best of both worlds: strategies to maximize the Passthrough Tax Deduction and use the low corporate tax rate. If you’re interested in the topic and would like to learn…Read more
On November 29, a federal court ordered Coinbase, Inc. to deliver customer records to the IRS. This decision follows litigation between the IRS and Coinbase dating back to November 2016. At that time, the IRS served a summons on Coinbase requesting a broad range of customer information. The IRS argued that they needed all the Coinbase customer records because taxpayer compliance for Bitcoin transactions was abysmal. But Coinbase fought back against the breadth of the IRS request. Partial Victory over IRS Although the district court judge ordered Coinbase to hand over documents to the IRS, Coinbase considers this a partial victory. The IRS will not get all the documents that it originally requested. Instead, the judge cut back on the…Read more
Here’s the summary of my talk on start-up tax considerations and cryptocurrency, sponsored by ProMeets. The talk took place on November 15 in San Francisco and I’m planning a new one in January in Menlo Park.