InsideBitcoins.com

Proposed Capital Gains Tax Cut by Trump Could Increase Crypto Profits

Proposed Capital Gains Tax Cut by Trump Could Increase Crypto Profits

A newly proposed capital gains tax cut by the US President Donald Trump could be a big win for the crypto industry. The tax cut is expected to be helpful in boosting crypto profits.

Trump considering a capital gains tax cut

Speaking at a news conference at the White House this week, President Trump said that he is considering a capital gains tax cut “very seriously.” He noted, “We’re looking at also considering a capital gains tax cut, which would create a lot more jobs.”

Proposed Capital Gains Tax Cut by Trump Could Increase Crypto Profits

The President’s ability to cut capital gains taxes is debatable. The 20% tax is primarily managed by Congress. If Trump is interested in the cuts, he will have to get lawmakers on his side. If not, he may sign an executive order that can cut tax bills via indexing capital gains to inflation. This will adjust the original purchase price of an asset when sold. Bloomberg suggests will ensure that no tax is paid on appreciation in value linked with inflation. This will not be as beneficial to traders because crypto profits are generally higher than CPI.

How does the US tax users?

Cryptocurrency taxation in the US is currently a patchwork of regulation. Gains and losses are to be reported for each and every transaction. Cryptocurrency earned via staking should also be reported, regardless of whether one makes a profit. The Internal Revenue Service (IRS) considers cryptocurrency as property which is why each transaction must be reported. If a person fails to report the income, he will face penalties as well as interest on unpaid taxes.

The IRS also suggests that federal income tax withholding and payroll taxes will be applicable to wages paid in cryptocurrencies. The IRS is focusing extensively on their staking rewards as it gains more momentum among crypto users. Staking will also be introduced on Ethereum which could create a capital gains issue for stakers. The recipients on the network will have to record the amount, the concurrent price, and the rewards they receive, right when they were distributed.

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • US-Friendly
  • Paypal accepted
  • 12+ cryptocurrencies
4.5/5

Visit Site
75% of retail investors lose money.
eToro Reviews

    eToro Reviews

    https://insidebitcoins.com/visit/etoro-newsCreate your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees
    4.5/5

    Visit Site
    80.5% of retail investors lose money.
    Plus500 Reviews

      Plus500 Reviews

      https://insidebitcoins.com/visit/plus500-newsCreate your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Past performance is no guarantee of future results.
      Avatar

      Sherlock Gomes loves to write and express his views on anything related to Crypto. He has been covering Crypto for more than two years now. He likes Bitcoin and Cardano. He also writes on Finance, Healthcare, and Technology among other stuff. He can be reached by e-mail on sherlockg@insidebitcoins.com