If you own any cryptocurrency, there’s a secret tax loophole that can save you thousands
In the past few weeks, there has been a flurry of news about cryptocurrencies, from Tesla, who just announced a few days ago that it still holds $ 1.3 billion worth of Bitcoin - and that it also plans to use Bitcoin as a soon Accept means of payment. The City of Miami continues to talk about MiamiCoin, its own cryptocurrency token that will be used to fund development projects in the Magic City.
Meanwhile, some crypto market investors are celebrating the recent 46% decline from the market's all-time high in May. The reason for this is a tax loophole that has made headlines in the past few weeks. This particular loophole treats crypto losses differently than losses associated with an asset such as a stock. And greater awareness of this comes at a time when Democratic lawmakers in Congress are looking to squeeze crypto investors for more money.
Latest cryptocurrency news
The loophole, which may sound a little esoteric to the average American, works like this. Crypto investors can sell their assets at a loss. Then they can use that loss to reduce or wipe out capital gains tax on other assets that are doing well. And they can buy back the crypto asset they sold at a loss to make sure they are ready when a price rally occurs for it. While they usually have to wait essentially a month to do the same with a stock.
"One thing savvy investors do is sell at a loss and buy back Bitcoin at a lower price," CPA Shehan Chandrasekera told CNBC. "You want to look as poor as possible."
Chandrasekera went on to state that he sees this every month, week, and quarter. Depending, of course, on your level of investment. Investors can take so many of those losses, he said. Losses that you can easily use to offset future profits.
The infrastructure bill and Amazon
We should add that this is happening in the light of other important news about cryptocurrencies. In particular, an important development related to the Infrastructure Act, which the Biden administration is keen to pass by Congress.
Basically, new requirements for crypto reporting are part of the mix of political goals in this bill. Don't ask us what that has to do with roads and bridges - you know, infrastructure. It seems that the new reporting requirements for cryptocurrencies should help raise billions of dollars. For what else? To help pay for other infrastructure aspects of the legislation.
We also mentioned in a post a few days ago that Amazon is looking for an experienced person to run its digital currency and blockchain department. The result sparked speculation that Amazon will eventually support Bitcoin payments - and possibly even launch its own cryptocurrency. “Amazon has an official position on this issue,” we reported earlier this week. The company's position is that the spate of reports claiming Bitcoin payments are coming soon are "baseless". To be honest, however, it sounded more like an undeniable denial. The company certainly seems interested in the blockchain landscape.
Today's top offers
The 3-in-1 wireless charging station for Apple devices costs just $ 17 on Amazon
Has anyone made a mistake? This soundbar should by no means only cost $ 49.99
When 75,000 Amazon shoppers rave about a $ 130 memory foam mattress, this is your place to check it out
See the original version of this article on BGR.com
You should check here to buy the best price guaranteed products.
Highlights: Fresno State stuns No. 13 UCLA after an unforgettable fourth quarter
A doctor in Texas says he broke the law and performed an abortion: 'I can't just sit back and watch us return to 1972'
Awkwafina ‘open to the conversation’ about her history of AAVE use on-screen
Renegade Cyber Ninjas Brazenly Defies Senate Demand For Records In Arizona Vote 'Fraudit'
Netflix subscribers are obsessed with this new and exciting dark fantasy movie
McAuliffe plans could cost each Virginia family $5,400: Report