A new bill is proposed in the U.S to increase the tax percentage on the income of crypto users and eliminate the loophole of existing crypto tax laws.
In the present time, crypto tax is a big matter. Rulers want to grab more tax from crypto investors than stock market investors and it seems that it is just like a law hammer on the crypto market. A new law on crypto tax will target wealthy Investors of the U.S.
On Monday a document released by the House Committee, proposed to change some rules of the crypto tax system to grab more tax from the profit gains of the crypto traders and also planned to encounter the loophole that crypto traders are using to keep their funds away from high tax.
In the present time, crypto investors of the U.S are required to pay tax from 20% to 25% at their crypto Investment profit. But the new crypto tax proposed by the democrats wants to increase this tax by 3.8%.
So if the proposed bill passed then wealthy crypto traders would have to pay upto 28.8% tax on gains.
Secondly, this proposed bill will reduce the days of net crypto gain system loopholes, wash sale rules.
In actuality, all the crypto investors have to pay total tax on the gains, but in that case where a Investor will reinvest in another asset and then lose funds and that results in less net profit gains, then users don’t need to pay tax by high amounts.
So to avoid the wash sale rule’s loophole, the time is reduced and now tax will be applicable on the tax gain of 30 days.
If this proposed bill, passed then it will come into effect from 31 December and will prohibit investors from claiming capital gains deductions on certain assets.