A new article published yesterday on the Wall Street Journal is in today’s Bitcoin news – mostly because of its interesting angle and a piece of advice to investors on how they should sell and then repurchase their Bitcoin (BTC) in order to save on taxes.
In the context of the current bear market, the WSJ article suggests that “the only good thing about investing in cryptocurrencies [this year] was the tax break.”
Since the United States tax authorities and the Internal Revenue Service (IRS) have both treated crypto as an investment property since 2014 (but not a currency) – crypto users can allegedly benefit from the “special and favorable” taxation policy the country gives to these investments.
For all of the investments in the US – short-term gains and losses apply to holdings held a year or less. Moreover, any gains are taxable at a rate of as high as 40.8%, while long-term gains and losses max out at an upper bound of 23.8%.
While the losses can be used to offset taxes on gains for all investments, the potential tax relief may be greater than for traditional assets in the case of crypto, mostly because “a quirk” in US tax rules permits traders to sell and reinvest their crypto right away and in respect of the law.
This is mostly because cryptocurrencies are now exempt from the so-called “wash sale” rules which “prohibit capital loss deductions when investors purchase a security such as a stock within 30 days of selling a loser,” as the article suggests.
As previously reported on our site, data showed that ahead of the preceding tax year only 0.04% of tax filers were reporting capital gains from crypto investments to the IRS.
New Banknotes Help Venezuela Set A Bitcoin Trading Record
Brokerage Giant TP ICAP Opens Its Doors To Bitcoin Trading
“We want to be close to what’s happening within this nascent asset class because we believe it’s important to invest in the early stages of a growing market.”The brokerage giant TP ICAP hopes that the new bitcoin trading option will attract the new clients’ money and will diversify its offering. The company which operates as an intermediary to financial, commodity and energy markets has seen a slight slump in revenue since the 2008 meltdown. Brokerage companies like ICAP mainly make trades for its banking partners but the volumes show that the company was forced to issue a profit warning in 2018. The initiative will be conducted from London by Duncan Trenholme and Simon Forster who have plans to expand in the United States and in Asia. The ICAP services will provide derivatives trading but they won’t turn their eyes from the option to hold digital assets directly in the future. Forster admitted that the number one cryptocurrency poses a threat to traditional assets so the finance executives can’t really afford to stand on the sidelines:
“TP ICAP also understands that this technology could disrupt or impact other asset classes where we currently operate, so we feel it’s important to be informed.”The traditional finance firms are slowly getting into crypto as well. At the start of the year, Fidelity launched bitcoin custody services for their clients. The multi-million asset management company will also facilitate bitcoin trading in the upcoming months. Also as noted in some of the best cryptocurrency news sites, the Intercontinental Exchange (ICE), which is the parent company of the New York Stock Exchange is preparing to launch Bakkt which is a physically-settled bitcoin futures and custody offering. In the meantime, Nasdaq will launch its own platform for bitcoin derivatives in 2019.
Bitcoin Ignores Correction Calls: Where Is BTC Headed?
“$BTC – found resistance right at the lower cloud and has opened the weekly candle inside the cloud. This represents the highest time frame that #bitcoin has breached into the cloud…with resistance at just above $10K…”An analyst named Chonis Trading then took to Twitter with the following statement: https://twitter.com/BigChonis/status/1140410183665049603 He also added:
“One more step up the mountain as #bitcoin hits right at the 38.2% fib resistance making it the next target for the bulls to close over and also makes maintaining the 23.6 fib support that much more important for overall continuation…”As Bitcoin ignores correction calls, many believe that the $10,000 mark could be achieved very soon.
Bitcoin Hash Rate Reaches New High As Price Reclaims $9,000
Join us on Facebook
UPCOMING EVENTS RECOMMEND BY DC FORECASTS
Regulation5 days ago
Financial Action Task Force Wants To Turn BTC Exchanges Into Banks
Ethereum News2 days ago
Ethereum Will Skyrocket By 70% Against BTC: Analyst Prediction
Bitcoin News3 days ago
Bitcoin Tax Evasion Will Be Criminally Punishable: IRS Warns
Bitcoin News3 days ago
Weiss Ratings Upgrades Bitcoin From B- To B: Report
Altcoin News4 days ago
Bitcoin Wraps Around $8,200: Consolidation Could Happen Soon
Altcoin News1 day ago
Hottest Cryptocurrency Is Up 330% This Year (And It’s Not Bitcoin)
Bitcoin News4 days ago
Call Center Scam From India Steals $1.7 Million In Bitcoin
Blockchain News5 days ago
Erik Finman Will Bring Crypto To The Masses With The Help Of CoinBits