A digital asset is a digital representation of value that is recorded on a cryptographically secured distributed ledger or any similar technology. A digital asset is treated as property, and general tax principles that apply to property transactions apply to transactions using digital assets, including how to figure your holding period for short-term and long-term capital gains and losses explained earlier under Long-term or Short-term. Digital assets include property that has been referred to as “convertible virtual currency,†“cryptocurrency,†and “non-fungible tokens.†If a particular asset has the characteristics of a digital asset, it will be treated as a digital asset for federal income tax purposes. For more information on the tax treatment of digital assets, see Notice 2014-21, 2014-16 I.R.B. 938, available at IRS.gov/irb/2014-16 IRB#NOT-2014-21, (as modified by Notice 2023-34, 2023-19 I.R.B. 837, available at IRS.gov/irb/2023-19 IRB#NOT-2023-34), Rev. Rul. 2019-24, 2019-44 I.R.B. 1004, available at IRS.gov/irb/2019-44 IRB#REV-RUL-2019-24, Rev. Rul. 2023-14, 2023-33 I.R.B. 484, available at IRS.gov/irb/2023-33 IRB#REV-RUL-2023-14, Rev. Proc. 2024-28, 2024-31 I.R.B. 326, available at IRS.gov/irb/2024-31 IRB#REV-PROC-2024–28, and IRS.gov/VirtualCurrencyFAQs. For more information on the tax treatment of property transactions and on short-term and long-term capital gains and losses, see Pub. 544, Sales and Other Dispositions of Assets., Investment expenses include costs tied to managing or producing investment income, such as advisory fees, custodial fees and research subscriptions. But can you deduct investment-related expenses on your tax return? Under current tax law, most miscellaneous itemized deductions—including investment expenses—were suspended through 2025 by the Tax Cuts and Jobs Act. This means that, for now , This publication provides information on the tax treatment of investment income and expenses. It includes information on the tax treatment of investment income and expenses for individual shareholders of mutual funds or other regulated investment companies, such as money market funds..