The new Tax Bill signed by Trump has been in the news for days and has been praised by many Americans who will benefit from the tax cuts this coming year.
But what does it mean for crypto investors in the US? Nothing good, it seems.
"Starting Jan. 1st, 2018, all cryptocurrency trades will be a taxable event, including swapping one cryptocurrency for another."
In fact "Up until now, investors have relied on the law to exchange one digital currency for another without paying taxes. For instance, someone who owned Bitcoin could diversify their holdings into Ethereum or Litecoin, and plausibly tell the IRS it created no tax obligations."
But these new regulations imply that "The end result is that, starting next year, effectively all cryptocurrency trades will be taxed at the time of their execution, bringing an end to one of the most lucrative tax loopholes previously available to traders."
In short, bad news all around. Is the same kind of legislation being rushed all over the world? Probably.
Find out more at source:
http://bitcoinist.com/cryptocurrency-investors-lose-tax-break/