 So for example, check, yes, if at any time during 2022, you received digital assets as payment for property or services provided. So again, you can kind of think about that as similar to a bartering situation. Obviously if you received money for property and services that you provided, that would be a form of income. That would be like doing business, right? You might have a schedule seed business where you received like cash for the things that you do. But if you received something other than cash, a bartering situation, someone paid you in the form of their goods and services, the IRS would still wanna record that as income. And if you received something like a digital asset, same thing, right? You received something other than the standard US unit of dollars, and therefore you'd have to record it basically as income because you have a business, you just got paid in something other than US dollars. Receive digital assets as a result of a reward or award. So now we have the question of if you get a reward or an award. Award. Is that income or not? Meaning is an award income? So you might have some areas where there's like a small reward or something and it's part of your job or something like that. And whether or not it's gonna be income or not. But usually if you get a reward or award, if you win a prize or something like that, that might most likely be income. And if you get paid in the form of a new car, then you're probably gonna have to include that as income, even though you got paid in a new car. If you get paid in cash, you are almost certainly gonna have to record that as income. If you won the lottery or something, if you get paid in digital assets, you once again will most likely have to record that as income. It's not really different in principle. Receive new digital assets as a result of mining, staking and similar activities. So this is the process that they set up to actually create the digital assets. So if you're mining the digital assets, then you're in the system actually creating the digital assets and whatnot. That of course, like mining, actual mining, if you own the mine and you're mining stuff out of it's a business. And you would think having income from the business and would have to record that in a similar way to other businesses. It's just that you're dealing with these digital assets now. Receive digital asset as a result of a hard fork. So a hard fork. It's kind of a technical thing, but sometimes in a hard fork, when you're talking about the blockchain and whatnot, how the blockchain work, holders of tokens and the original blockchain will be granting tokens and the new fork as well. So that means you could get like a benefit, be kind of similar, I suppose, to like getting dividends or something like that. You're getting more value, like interest on an investment and therefore you would suspect that might be income then from an IRS perspective. Disposed of a digital asset in exchange or trade for another digital asset. So this would be not too dissimilar to stocks and bonds. If you had the stocks and bonds and you sell the stocks and bonds, then you might sell it at a gain. You bought them at a lower price, you sell them at a higher price, then you would have the gain involved there. You might be selling the stocks and bonds in order to purchase other stocks and bonds and similar thing with the digital assets. You might be selling the digital assets to purchase other digital assets. If you sell the digital asset, then that would, you would think be the point that you realized the gain on the sale, not really different in nature to normal kind of rules with other kinds of assets. It's just the digital assets themselves are a little confusing. Sold a digital asset. So obviously if you just outright sell a digital asset, then you would think that you'd have to cost what you purchased it for. If it was an EFT or whatever, you bought the cards that you have, then you'd have to see what you bought it for, what you sold it for, the difference you would think and record a gain, possibly a capital gain in a similar way to stocks and bonds. Transfer digital assets with free without receiving any consideration as a bona fide gift. So most of the time when we're providing transactions, those transactions are gonna be in the form of an exchange of some kind doing business in some kind. If you have a gift, then you're transferring and you wouldn't be receiving anything in return for an arm length type of transaction. You may then have gift tax kind of situations that could be involved if you're giving a gift, which is kind of tied to estate taxes and whatnot, otherwise disposed of any other financial interest in a digital asset. So those are them. You have a financial interest and a digital asset if you are the owner of record of a digital assets or have an ownership stake in an account that holds one or more digital assets, including the rights and obligations to acquire a financial interest or you own a wallet that holds the digital assets. The wallet often being the thing that has the password and whatnot that holds the digital assets. The following actions or transactions in 2022 alone generally don't require you to check yes. So now we're gonna go through some things where you might say these are kind of things where maybe I have to check yes on this thing because I do have some digital asset type of stuff, but maybe they weren't really covered in the last area. So these are the ones that you wouldn't have to check yes, even though you might consider these things kind of like digital asset stuff. So holding a digital asset in a wallet or an account. So notice when you're thinking about whether or not there's gonna be taxes related to it, you would think there'd be some kind of transaction happening that you're possibly realizing again, you're getting paid in digital assets, you're trading digital assets, you're buying and selling digital assets. If you're just holding on to the digital assets in a wallet, and there was no trade, you haven't sold them, then it's kind of like the stocks and bonds you would think that you have not yet realized the gain on the digital asset because you're just holding on to it. So you would think there wouldn't be a tax implication until the point in time you sold it, and then you might have to take what you sold it for, sales price minus the cost, and you might have a gain transaction at that point when you realized it. Transferring a digital asset from one wallet or account you own or control to another wallet or account that you own or control. So the wallets are the things that hold the digital assets. If you sell the digital asset, then you would think that might be a triggering event that would possibly cause a taxable event. But if you just transfer from one wallet to another in a similar way as if you're gonna transfer from one retirement account to another retirement account like a rollover situation, then you would think there might not be any tax consequences because you haven't realized the sale of them. You're just still holding onto them in another wallet. I wanted a leather wallet and I had a cheap wallet last time made out of duct tape. So purchasing, I'm just making that up. Digital asset using US or other real currency including through the use of an electronic platform such as PayPal and Venmo. So if you purchase the digital assets, you would think at the point of purchase, that's not when you have a tax triggering event usually. It's when you sell the digital assets that you might have a tax triggering event because that's when you would realize the gain which would be the sales price minus the cost. Do not leave the question unanswered. So you wanna check something off on that or they're not gonna let you process the return. If you're doing it electronically or they might delay the processing so they'd wanna force you to answer that question. You must answer yes or no by checking the appropriate box for more information. You can go to irs.gov virtual currencies and so you can check that link out as well. So how do you request digital asset transactions? So if in 2022 you disposed of any digital asset which you held as a capital asset through a sale, trade, exchange, payment, gift or other transfer, check yes and use A, form 8, 9, 4, 9 to calculate your capital gain or loss and report the gain or loss on schedule D, form 10, 40. So we'll talk more about schedule D when we get to the capital gains in a future presentation. If you receive any digital asset as compensation for services or disposed of any digital assets that you held for sale to customers in a trade or business you must report the income as you would report other income of the same type like for example, W2 wages on form 10, 40 or 10, 40 SR, line 1A or inventory or services on schedule C. So that would be a situation where you're accepting digital currency as a form of payment would be similar to the bartering situation. If you had a schedule C then you'd have to record it in income not in units of Bitcoin but exchanging the Bitcoin that you got paid in to dollars. And that's so you got this exchange kind of issue.