A Taxmans guide to taxation of crypto assets: Taxation issues of DAOs

Table of Links

Abstract and 1. Introduction

2. Bitcoin and the Blockchain

   2.1 The Origins

   2.2 Bitcoin in a nutshell

   2.3 Basic Concepts

3. Crypto Exchanges

4. Source of Value of crypto assets and Bootstrapping

5. Initial Coin Offerings

6. Airdrops

7. Ethereum

   7.1 Proof-of-Stake based consensus in Ethereum

   7.2 Smart Contracts

   7.3 Tokens

   7.4 Non-Fungible Tokens

8. Decentralized Finance and 8.1 MakerDAO

   8.2 Uniswap

   8.3 Taxable events in DeFi ecosystem

   8.4 Maximal Extractable Value (MEV) on Ethereum

9. Decentralized Autonomous Organizations - DAOs

   9.1 Legal Entity Status of DAOs

   9.2 Taxation issues of DAOs

10. International Cooperation and Exchange of Information

    10.1 FATF Standards on VAs and VASPs

    10.2 Crypto-Asset Reporting Framework

    10.3 Need for Global Public Digital Infrastructure

    10.4 The Challenge of Anonymity Enhancing Crypto Assets

11. Conclusion and References

149. Section 721 of the Internal Revenue Code (IRC) of the United States deals with the tax treatment of contributions to partnerships in exchange for partnership interests. Specifically, it states that no gain or loss shall be recognized to a partnership or to any of its partners in the case of a contribution of property to the partnership in exchange for an interest in the partnership.