Digital assets are bought and sold globally, 24/7, can be divided into smaller and smaller ownership units, and can be transferred between buyers and sellers at low cost and with lightning speed around the world in a global...more
12/4/2025
/ Blockchain ,
Capital Markets ,
Common Reporting Standard (CRS) ,
Cross-Border Transactions ,
Cryptoassets ,
Cryptocurrency ,
Digital Assets ,
FinTech ,
International Tax Issues ,
IRS ,
OECD ,
Stablecoins ,
Taxation
Crypto is one of the most important disruptors in the past century of finance. On this subject, opinions abound: each one, strongly held and strongly defended....more
11/26/2025
/ Blockchain ,
CFTC ,
Cryptoassets ,
Cryptocurrency ,
Decentralized Finance (DeFi) ,
Digital Assets ,
Executive Orders ,
Financial Markets ,
FinCEN ,
Regulatory Oversight ,
Regulatory Reform ,
Securities and Exchange Commission (SEC) ,
Stablecoins ,
Tokenization ,
Trump Administration
Successful tax-loss harvesting depends on a taxpayer’s ability to deduct losses. In addition to their federal tax liability, taxpayers also need to consider state and local taxes. As we wrap up this series, I want to focus in...more
11/10/2025
/ Asset Management ,
Capital Gains ,
Internal Revenue Code (IRC) ,
Marital Assets ,
Marriage ,
One Big Beautiful Bill Act ,
Partnerships ,
SALT ,
Spouses ,
State and Local Government ,
State Taxes ,
Tax Deductions ,
Tax Legislation ,
Tax Liability ,
Tax Losses ,
Tax Planning ,
Taxation
Is there a place for derivatives in tax-loss harvesting? Yes. As we discussed in Part I, losses that are appropriate for tax-loss harvesting can be generated from a wide range of capital assets, including sales of stocks,...more
9/22/2025
/ CFTC ,
Derivatives ,
Futures ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Put and Call Options ,
Swap Agreements ,
Tax Deductions ,
Tax Losses ,
Tax Planning ,
Taxation ,
Wash Sale Rules
Taxpayers invest to make money and hope to earn a decent return on their investments. Tax-loss harvesting can be used as part of a taxpayer’s overall investment strategy without affecting investment returns, while offsetting...more
8/11/2025
/ Asset Management ,
Capital Gains ,
Capital Markets ,
Hedge Funds ,
Income Taxes ,
Investment Funds ,
Investment Management ,
IRS ,
Passive Investments ,
Securities ,
Stocks ,
Tax Liability ,
Tax Losses ,
Tax Planning ,
Taxation ,
Wash Sale Rules
At the beginning of this series, I mentioned briefly that taxpayers can use tax-loss harvesting approaches in tandem with a number of investment strategies, which we will go into in more detail in Part III. Many of these...more
7/25/2025
/ Capital Gains ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Investment ,
Investors ,
IRS ,
Securities ,
Tax Deductions ,
Tax Liability ,
Tax Losses ,
Tax Planning ,
Taxation ,
Wash Sale Rules
What is tax-loss harvesting? “Tax-loss harvesting,” in its simplest form, is the sale of a capital asset at a loss to “mop up” tax that would otherwise be due on capital gain from the sale of another capital asset. Capital...more
Tax equity investments in 2023 were about $20 billion annually. To meet the goals of the Inflation Reduction Act (IRA), “many forecasters estimate that tax equity will need to increase […] to over $50 billion.”...more
10/9/2024
/ Clean Energy ,
Energy Projects ,
Energy Sector ,
Energy Tax Incentives ,
Inflation Reduction Act (IRA) ,
Investment Tax Credits ,
Production Tax Credit ,
Renewable Energy ,
Solar Energy ,
Tax Credits ,
Tax Equity ,
Wind Power
What is “monetization”? Monetization is the process by which property is converted into money or something else of value. In the context of the Inflation Reduction Act of 2022 (IRA), certain provisions can allow entities that...more
9/25/2024
/ Energy Projects ,
Energy Sector ,
Energy Tax Incentives ,
Inflation Reduction Act (IRA) ,
Internal Revenue Code (IRC) ,
Investment Tax Credits ,
IRS ,
Monetization ,
Production Tax Credit ,
Renewable Energy ,
Tax Credits ,
Tax Exempt Entities ,
Tax Incentives ,
Tax Liability
What is the Low-Income Communities Bonus Credit? The Low-Income Communities Bonus Credit available through the Inflation Reduction Act of 2022 (IRA) is designed to increase the siting of, and access to renewable energy...more
9/19/2024
/ Clean Energy ,
Competitive Bidding ,
Economic Development ,
Energy Projects ,
Energy Sector ,
Housing Developers ,
Inflation Reduction Act (IRA) ,
Internal Revenue Code (IRC) ,
Investment Tax Credits ,
IRS ,
Production Tax Credit ,
Renewable Energy ,
Solar Energy ,
Tax Credits ,
Wind Power
What is the purpose of the Energy Community Bonus Credit? The Inflation Reduction Act (IRA) introduced the Energy Community Bonus Credit to encourage renewable energy project developers to locate their facilities and energy...more
9/11/2024
/ Brownfield Properties ,
Clean Energy ,
Department of Energy (DOE) ,
Energy Projects ,
Energy Sector ,
Energy Tax Incentives ,
Inflation Reduction Act (IRA) ,
Investment Tax Credits ,
IRS ,
NAICS ,
Prevailing Wages ,
Production Tax Credit ,
Tax Credits
What is the purpose of the Domestic Content Bonus Credit? The Inflation Reduction Act (IRA) introduced the Domestic Content Bonus Credit to provide an additional credit amount to taxpayers that meet its requirements. The...more
9/9/2024
/ Clean Energy ,
Domestic Corporations ,
Energy Projects ,
Energy Sector ,
Energy Tax Incentives ,
Inflation Reduction Act (IRA) ,
Investment Tax Credits ,
IRS ,
Production Tax Credit ,
Renewable Energy ,
Supply Chain ,
Tax Credits ,
Tax Incentives
Why did Congress provide bonus credits to a facility or a project that pays its workers “prevailing wages” and hires apprentices? Congress viewed the Inflation Reduction Act (IRA) as a way to not only move the United States...more
9/3/2024
/ Apprenticeships ,
Energy Projects ,
Energy Sector ,
Inflation Reduction Act (IRA) ,
Investment Tax Credits ,
IRS ,
Prevailing Wages ,
Production Tax Credit ,
Tax Credits ,
Tax Incentives ,
Wage and Hour
Why did the Inflation Reduction Act (IRA) reduce the base amounts of the energy tax credits? The IRA reduced base credit amounts from their pre-IRA levels to encourage energy projects to meet Congressional policy objectives....more
8/28/2024
/ Energy Projects ,
Energy Sector ,
Inflation Reduction Act (IRA) ,
Infrastructure ,
Investment Tax Credits ,
IRS ,
Prevailing Wages ,
Renewable Energy ,
Solar Energy ,
Tax Credits ,
Tax Incentives ,
Wind Power
What is a Production Tax Credit (PTC)?
A Production Tax Credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying clean technologies for the first 10 years of a system’s...more
8/27/2024
/ Carbon Emissions ,
Clean Energy ,
Energy Projects ,
Energy Sector ,
Greenhouse Gas Emissions ,
Hydrogen Power ,
Inflation Reduction Act (IRA) ,
Investment Tax Credits ,
IRS ,
Production Tax Credit ,
Proposed Regulation ,
Renewable Energy ,
Solar Energy ,
Supply Chain ,
Tax Credits ,
Tax Incentives ,
Wind Farm
Signed into law on August 16, 2022, the Inflation Reduction Act (IRA) is the most significant long-term commitment made by the U.S. government to encourage and support a clean energy future. The IRA modifies and revises the...more
8/16/2024
/ Carbon Emissions ,
Clean Energy ,
Climate Change ,
Energy Projects ,
Energy Sector ,
Energy Tax Incentives ,
Greenhouse Gas Emissions ,
Incentives ,
Inflation Reduction Act (IRA) ,
Renewable Energy ,
Solar Energy ,
Supply Chain ,
Tax Credits
What is a hedged executory contract? A “hedged executory contract” is another type of transaction that is eligible for integration under Code Section 988(d). A hedged executory contract results when a taxpayer enters into an...more
6/12/2024
/ Capital Assets ,
Capital Gains ,
Capital Losses ,
Financial Transactions ,
Foreign Currency ,
Foreign Entities ,
Hedges ,
Hedging ,
Internal Revenue Code (IRC) ,
IRS ,
Securities ,
Tax Planning
Are there special hedging provisions for section 988 transactions? Yes. In addition to the business hedging rules I address in our earlier Q&A with Andie series, a special hedging provision is available at Code section 988(d)...more
6/5/2024
/ Capital Assets ,
Capital Gains ,
Capital Losses ,
Financial Transactions ,
Foreign Currency ,
Foreign Entities ,
Hedges ,
Hedging ,
Internal Revenue Code (IRC) ,
IRS ,
Tax Planning
Which transactions qualify as section 988 transactions?
In section 988 transactions, the taxpayer makes payments or receipts denominated in or determined by reference to one or more nonfunctional currency. ...more
Are all foreign currency gains taxable?
No. Under a de minimis exemption individual taxpayers with foreign currency gains of $200 or less on a “personal transaction” do not need to report them....more
Navigating the federal taxation of foreign currency can be compared to trying to cross a perilous sea. Both involve unexpected rough patches, serious difficulties, and frustrating complexity....more
Do the tax hedge rules apply to consolidated tax groups? Yes. The Treasury Regulations treat members of a consolidated corporate group as divisions of a single entity. As a single entity, the risks and positions of all group...more
5/3/2024
/ Business Taxes ,
Capital Gains ,
Capital Losses ,
Corporate Taxes ,
Hedges ,
Hedging ,
Income Taxes ,
Popular ,
Securities Dealers ,
Tax Planning ,
Tax Returns
What are the tax accounting rules for hedges? Whether or not a qualified tax hedge is properly identified, it must be tax accounted for under a method that clearly reflects income. The timing of gains and losses on hedges...more
When must a hedge be identified and accounted for tax purposes? Taxpayers must identity each hedging transaction and the item it hedges. A taxpayer must clearly identify a hedging transaction “before the close of the day on...more
What is the “tax character” of a hedge? A taxpayer receives ordinary gain or loss on qualified hedges that have been properly identified in accordance with Treasury Regulation § 1.1221-2. This allows a taxpayer to ensure that...more
4/12/2024
/ Asset Management ,
Business Taxes ,
Capital Losses ,
Corporate Taxes ,
Debt ,
Hedges ,
Hedging ,
Interest Rates ,
Internal Revenue Code (IRC) ,
Investment ,
Reporting Requirements ,
Risk Management ,
Tax Planning