Democrats in the U.S. House of Representatives have proposed several new tax initiatives that could affect crypto users.
Closing the hole
The first plan is to raise long-term weather values from the current 20% to 25%. In addition, an additional fee of 3.8% of net investment return was discussed. Although this step Official document Mainly affecting wealthy investors, the U.S. capital gains and dividend tax rate could reach 28.8%.
The tax plan also proposes to include digital assets in the ‘wash sale’ rules. These rules prevent investors from claiming capital gains deductions on certain assets purchased within 30 days of the sale, “previously applicable to shares and other securities.”
Existing tax laws under the IRS currently treat cryptocurrencies as “wash sales”, with some crypto users being able to use them to avoid capital gains, while U.S. lawmakers plan to close this hole.
Vote September 27
If approved and signed, crypto users will be required to report taxes under the new laundry-sales rules. These will come into effect from December 31, 2021, and the capital gains tax rate will apply to transactions made after September 13.
House Democrats’ tax plan follows the passage of an infrastructure bill in the Senate that recommends enforcing stricter rules for companies dealing with cryptocurrencies and expanding reporting requirements for brokers and exchanges. Many Democrats and Republicans made changes to the text of the bill to clarify the role of cryptocurrencies.
The vote on the proposal is scheduled for September 27. As a result, it is unknown at this time what he will do after leaving the post.
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