Quick buying and selling can reduce Bitcoin taxes: report

Wall Street Journal published an article on the 21st of December saying that investors should sell and then again purchase their Bitcoin assets. This move will make them save some money on taxes. 2018 was a very rough year for the crypto market as many currencies suffered major losses. Wall Street Journal thinks that the profitable thing that investors got from investing in crypto was the tax break. In 2014, the IRS of the US categorized cryptocurrency as an investment like stocks and related assets. The people who invested in crypto get benefits from the taxation policy instilled on investments.

The Wall Street Journal further mentions that timing is a very important factor in tax. A loss in tax can be carried forward. If a person sold their assets for a great value during the peak of the crypto market last year then the losses that person faces in 2018 can not balance the tax indebted on the previous avails.

Robert Gordon is a tax strategist, and he gave his advice to the Wall Street Journal. He said that it does not matter if investors decide to purchase their assets again. Investors will be gaining either way if they gather all their losses from crypto.

It was previously reported that about zero point zero four percent reports stated major profits from crypto investments. This was reported to the IRS. In July of last year, it was demanded that major cryptocurrencies should give a complete report on all of the user it has. All of the information was demanded in detail of over five hundred thousand users by the IRS. This was done to stop and counter the tax deception that occurred in crypto. But in the November the demand was changed because of court orders and instead of giving the information of all users only the information of fourteen thousand active users was demanded. However, the IRS demanded the information of only thirteen thousand users.

Quick buying and selling can reduce Bitcoin taxes: reportJoin eToro and get $50 cash to start trading!

Join millions who’ve already discovered smarter investing by automatically copying the leading traders in eToro community for fast profits.