Bitcoin investors in the United States are selling their crypt to pay capital gains tax.
The first Bitcoin investors are faced with large gains on the profit realized in 2017. Reports show that they are selling off quickly before presenting their April tax.
Recall that IRS announced in 2014 that cryptocurrencies are defined as properties and not as currency.
The CEO of ARK Invest said in a quote:
"Those who have never paid taxes before are shocked.Many people have earned a lot from cryptocurrency last year but currently do not have enough cryptocurrency to pay taxes for last year's earnings."
In addition, the founder of OnlineTaxman.com, Vincenzo Villamena, said that people realized they were stuck with big tax bills. They are preparing to pay or sell the cryptocurrency.
How can cryptocurrency help people avoid paying huge taxes?
If an individual buys and sells Bitcoin within the same year, the person will be taxed on short-term capital gains that can reach 39% depending on the tax bracket.
Airdrops and Bitcoin launches are also taxed. However, they are taxed as ordinary income, and therefore the rate depends on the person's tax bracket. However, when a person resists Bitcoin for more than a year before the sale, he will only be liable for what the IRS refers to as long-term capital gains. The rate for this type of tax is significantly lower from around 15 to. 23.8%.
At the same time, Google announced the banning of all cryptocurrency ads that pushed Bitcoin prices to a minimum of every month. The volatile cryptocurrency decreased by $ 500 in a space of six hours. This is not a surprise since cryptocurrencies are highly susceptible to depressions in values and peaks.