Trump’s newly-signed tax plan means cryptocurrency deals will not be tax-free
President of the United States, Donald Trump, has signed the bill on taxes which, among other things, closes the tax gap for those who make deals in cryptocurrency. This has been reported by at least three independent media websites.
Before this bill was approved, cryptocurrency could be categorized as property, and this was widely used by entrepreneurs conducting deals in digital coins to avoid taxes. In other words, they implied cryptocurrency is equal to valuable art or real estate. The amendment of Article 1031 of the U.S. Tax Code erased the possibility of such insincere declarations. Now it tells property can only be physical, and cryptocurrency, as we know, is not.
Other details include that coins which are stored less than a year will be taxed by 10-37%, depending on the revenue of the holder. If coins are owned more than a year, then the tax will make solid 24 percent.
While cryptocurrency anarchists may say this measure is killing their dreams to build a tax-free digital society, Americans now actually have possibility to have better roads thanks to the money that were originally laundered by criminals and then reached an unknowing 3rd party in the United States which paid taxes for the revenue. Potentially, this could mean Trump made money clean again.
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