Here’s what investors need to know about the latest crypto tax reporting rules for 2022

The IRS is sharing more details on how to report digital assets for the 2022 tax filing year, according to draft instructions. Since 2019, there’s been a yes or no “virtual currency” question on tax returns, requiring filers to check a box to disclose their taxable crypto activity. 

For 2022, the agency has changed the term “virtual currency” to “digital asset,” with more guidance on when to check “yes.”
 

Notably, “digital asset” now includes non-fungible tokens, or NFTs, which grant ownership to items like art, and stablecoins, which are pegged to a real-world asset.