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Showing results for tags 'unrealized gains'.
US President Biden has released his budget proposal for the 2023 fiscal year and it isn’t all sunshine and roses for cryptocurrency in the States, despite local support from states like Florida, New York and Texas. Biden intends to impose mark-to-market rules to digital assets which are ‘actively traded’. This effectively means that investors are tax-liable for cryptocurrency gains that they have not yet realised by selling the asset in question. The above presents an hugely onerous obligations to investors which will surely push innovation and investment away from American shores. Biden dubs this the ‘modernisation’ of crypto regulations and expects the move would generate $6.6 billion in tax-revenue between 2023 and 2032. Furthermore, Biden wants to impose reporting requirements on US residents that hold more than $50,000 in offshore accounts. According to the Treasury, which expects the reporting tightening to generate $2.2 billion in revenue in ten years: "The global nature of the digital asset market offers opportunities for U.S. taxpayers to conceal assets and taxable income by using offshore digital asset exchanges and wallet providers," It is no secret that, as presidents go, Joe Biden is a big spender indeed. Though it seems foolhardy to force an emerging industry, like cryptocurrency, to shoulder to burden of his aggressive fiscal policy which is no doubt prompted by re-election pressures… https://decrypt.co/96270/biden-eyes-5-billion-2023-revenue-applying-new-tax-reporting-rules-crypto