Table of Contents
Introduction1
Overview of Virtual Currency1
| Virtual Currency Basics | 1 |
| The Nature of Cryptocurrency | 1 |
| What is Cryptography? | 1 |
| The Blockchain | 2 |
| The Cryptocurrency Wallet | 2 |
| Cryptocurrency Exchanges | 2 |
| Crypto Credit Cards | 3 |
| Crypto Wages | 3 |
| Initial Coin Offerings | 3 |
| What is Cryptocurrency Mining? | 3 |
| Transaction Fees | 4 |
| Protocol Changes | 5 |
| Investing in Virtual Currencies | 5 |
The Taxation of Virtual Currency5
| The Cost Basis of Virtual Currency | 5 |
| Virtual Currency Paid for Services Rendered | 7 |
| Virtual Currency Mining Transactions | 8 |
Taxation of Virtual Currency Transactions8
| Virtual Currency Sale, Exchange, and Disposal Events | 8 |
| Exchanges of Property for Virtual Currency | 9 |
| Sales, Exchanges, or Disposals of Partial Quantities | 9 |
| Virtual Currency Transfers | 10 |
| Charitable Gift Situations | 10 |
| Airdrop Distributions | 10 |
Transaction Recordation10
Transaction Reporting11
Summary11
Review Questions12
Answers to Course Questions13
Glossary14
Index15
Course Details
Author: Steven M. Bragg, CPA
Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.
Publication/Revision Date: 9/24/2025
Course Exam Questions (online): 5 (multiple-choice)
Program Delivery Method: Self-Study (NASBA QAS Self-Study)
Available Formats of Course Text: Downloadable PDF, Printed/Mailed
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
| EA/OTRP | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
National Registry of CPE Sponsors I.D.: 107615
IRS Qualified Sponsor I.D.: FWKKO — Course I.D.: FWKK0-T-00726-25-S
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Specify the characteristics of virtual currency.
- Recall the characteristics of a cryptocurrency wallet.
- Specify how the proof of work method functions.
- Recall how virtual currencies are taxed when they are sold, exchanged, or otherwise disposed of.
- Identify the self-employment tax issues related to virtual currency payments made in exchange for services rendered.
