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Bitcoin investors in the United States are selling off their crypts to pay capital gains tax.
Early Bitcoin investors are faced with large capital gains from the profit they made in 2017. Reports show that they are
Recall that IRS announced in 2014 that cryptocurrencies are defined as property and not as a currency.
The CEO of ARK Invest said in a quote: [19659002] "Those who have never paid taxes before are shocked." Many people have earned a lot from the 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 high taxes. They are preparing to pay or sell the cryptocurrency.
How does selling cryptocurrency help people not to pay huge taxes?
If an individual buys and sells Bitcoin within the same year, the person will be taxed based on capital gains that can go up to 39% depending on the tax bracket.
The extraction of Airdrops and Bitcoin is 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 ban on all cryptocurrency-related advertisements that push 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.
