Overview
CoinDesk quoted Lisa Zarlenga in an article titled "PayPal's Crypto Offering May Be 'a Huge Headache' for Taxpayers." The article, published October 26, discusses how PayPal's decision to embrace crypto could mean additional tax work for users unfamiliar with the crypto landscape. According to the article, adding crypto to the mix could make it more challenging to capture all the transactions and associated capital gains or losses, especially if users mix business and personal payments on these platforms.
Zarlenga says, "We're going to see more and more micro purchases, and the importance of some sort of de minimis (too minor to merit consideration) exception might become greater." She points out these transactions are currently treated as capital gains or losses, no matter how small, and therefore are taxable events.
A best practice for users might just be to focus on keeping well-maintained records of their crypto interactions, she adds.
The full article can be read at CoinDesk.
