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State Taxation of Digital Assets: Sales Taxation of Cryptocurrency and NFT Transactions

Accepting Virtual Currency as Payment, Multistate Treatment of NFT Sales

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, December 1, 2022

Recorded event now available

or call 1-800-926-7926

This course will provide tax professionals and advisers guidance on the state taxation of virtual currency and nonfungible tokens (NFTs). The panel will discuss the state tax implications of selling cryptocurrency and NFTs, accepting virtual money as payment, the application of sales tax, and planning techniques to minimize tax liability.


As more businesses accept virtual currency, consumers can exchange cryptocurrency for many goods and services. In addition to the federal tax treatment of virtual currency, there are state tax implications of transactions involving cryptocurrency and NFTs that businesses and investors must grasp and consider.

Buying, selling, and trading digital assets incurs tax consequences. The IRS treats virtual currency as property for tax purposes; disposing of property may result in a capital gain or loss. A taxpayer who receives virtual currency payments must, in computing gross income, include the fair market value of the virtual currency, measured in U.S. dollars, and the date the taxpayer received it.

Based on the IRS treatment of virtual currency and state conformity efforts, the sale of virtual currency may also be subject to state sales tax. This is an evolving area of the law, and states may impose a sales tax based on the electronic transmission of virtual currency or the sale of NFTs--or label it as foreign currency sales tax. The sales tax question brings new challenges in complying with state sales tax collection and reporting obligations.

Listen as our panel guides tax executives and advisers on the state tax implications of transactions involving virtual currency and NFTs and the critical considerations in the application of sales tax on the sale of or accepting virtual currency as payment for goods and services.



  1. Overview of federal taxation of virtual currency
  2. State conformity to IRS treatment of virtual currency
  3. Sales taxation cryptocurrency transactions
  4. Taxation of NFTs
  5. Key considerations and tax planning techniques to minimize state tax liability on virtual currency and NFTs


The panel will discuss these critical areas:

  • IRS treatment of virtual currency and current state regulations
  • Sales tax implications of accepting virtual currency as payment
  • Mining virtual currency and challenges for investors
  • Minimizing state tax liability in virtual currency transactions


Balinskas, Rebecca
Rebecca M. Balinskas

Of Counsel
Morrison & Foerster

Mrs. Balinskas is of counsel in the State and Local Tax Group in Morrison & Foerster’s New York...  |  Read More

Froelich, Edward
Edward L. Froelich

Of Counsel
Morrison & Foerster

Mr. Froelich represents clients in audit and litigation on all Federal tax issues. He is a former trial attorney...  |  Read More

Hayashi, John
John E. Hayashi, JD

Managing Director, Tax

Mr. Hayashi serves as a Managing Director of Tax at BPM, with nearly 30 years of public accounting and private...  |  Read More

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