Bitcoin's (NADEX: BTC.X) Challenge this Week

Bitcoin's (NADEX: BTC.X) Challenge this Week
Bitcoin's (NADEX: BTC.X)  Challenge this Week
Bitcoin's (NADEX: BTC.X) Challenge this Week Fool.com

Tax Day is April 17th, 2018 (NADEX: BTC.X)

Tax deadline for the U.S. is fast approaching and according to Fundstrat Global Advisors, $25 billion in tax liability may be looming over U.S. households due to cryptocurrency gains. What is even more unsettling, many people who made a lot of revenue trading crypto's may not have the cash on hand in order to pay their capital gains taxes, so selling may not be over. While no all investors who made revenue in 2017 will need to raise capital this way, it is fair to address the pressure this could put negatively on the market.  

According to the IRS, cryptocurrencies are considered "intangible property" and if the asset has been held for less than a year, all profits would be considered "short-term capital gains" which is taxed as ordinary income based on the IRS tax brackets. 

Matthew Frankel noted in the Motley Fool 

It's important to note that cryptocurrency gains aren't taxable until you sell your holdings or until you exchange them for something else of value. For example, if you bought $1,000 worth of bitcoin in the early days, and it's now worth $1 million, as long as you still own the bitcoin, you won't have to pay any tax. On the other hand, if you sell some of it or use some of your appreciated bitcoin holdings to buy something, you will have triggered a taxable event.

 

 

 

 

 
Read the source article at Fool.com

 


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