Published by Dental Accounting Group | The Successful Dentist™ | March 2026
The federal landscape for cryptocurrency and digital assets has shifted significantly with recent legislation, bringing updated cryptocurrency tax rules and expanded IRS guidance in the United States. For dental practice owners who hold, invest in, or accept digital assets or virtual currency, here is a summary of key developments and tax implications for your specific situation.
Key Changes from the One Big Beautiful Bill Act
Clearer Capital Gains Treatment:
Digital assets held for more than one year continue to qualify for long-term capital gains tax rates, while short-term gains remain taxed as ordinary income and subject to ordinary income tax rates. Documentation of your cost basis, purchase price, and fair market value of your crypto for every transaction is critical to determine taxable gain, capital loss, and overall taxable income for federal income tax purposes.
De Minimis Exclusion:
Small personal-use cryptocurrency transactions under a defined threshold may be excluded from gain recognition, reducing the reporting burden for minor crypto transactions. However, accurate transaction information and tracking of the fair market value of the cryptocurrency at the time of use are still important for tax reporting and compliance with IRS rules.
Business Payments:
Dental practices that accept cryptocurrency as payment for services must recognize ordinary income equal to the fair market value of the asset on the date received. This creates a taxable event and contributes to gross proceeds that must be reported on your income tax return. Proper tracking software, crypto tax software, or a crypto tax calculator can help document market value, crypto income, and related business expenses for tax purposes.
Retirement Accounts:
Clarity has been provided on the use of digital assets within self-directed IRAs and 401(k) plans, though significant compliance requirements apply. These assets are still treated as capital assets, and transactions may require reporting through forms such as Schedule D depending on dispositions of capital assets within investment accounts or retirement accounts.
What Dental Practice Owners Should Do Now
- If you hold cryptocurrency personally or in your practice, ensure you have accurate cost basis records, transaction information, and documentation of all cryptocurrency transactions, including those involving cryptocurrency exchanges or a crypto exchange platform.
- If your practice has accepted cryptocurrency as payment, consult your DAG advisor or tax advisor to ensure proper income reporting, completion of the appropriate IRS form or tax form, and alignment with current crypto tax forms and federal income tax return requirements.
- Do not assume that crypto transactions are invisible to the Internal Revenue Service. Reporting requirements have expanded significantly, including new cryptocurrency reporting standards, new tax forms, and increased oversight of financial interest in such assets.
- If you are involved in activities such as crypto mining, crypto sales, or hard fork events, these may trigger additional taxable events, crypto income, or crypto losses that impact your tax bill and overall tax return.
- Speak with your DAG advisor before making any large crypto transactions or changes to your investment accounts, as the tax implications, capital gains tax exposure, and treatment of digital assets can differ significantly from traditional investments such as real estate.
| Disclaimer: This article is for general informational purposes only. Cryptocurrency tax rules are complex and subject to further IRS guidance. This is not legal, tax, or investment advice. Consult a qualified professional before making decisions involving digital assets. © 2026 DG Accounting Professionals LLC. All Rights Reserved. |
Dental Accounting Group • Bellevue, WA • cpa4dds.com • 425.216.1612
© 2026 DG Accounting Professionals LLC. All Rights Reserved.