Wall Street Journal suggests the method to reduce Bitcoin taxes (BTC)

Bitcoin (BTC), Cryptocurrency, WSJ-While the crypto falling marketplace in 2018 has damaged investor portfolios, it could provide some relief in the tax season. According to a article published by The Wall Street Journal on December 21st, the collapse of the value of Bitcoin and altcoins in the current bearish market, with the worst month's BTC prices in November from August 2011, offers investors a method to save on taxes, suggesting,

"The only good thing about investing in cryptocurrencies [in 2018] it was the tax break ".

While many have satiated the abysmal rates of encryption for tax purposes in the United States – a number that is estimated to be less than 1% of investors according to some reports – the twisted nature of the tax code has been a tough pill for most swallow. The current US fiscal policy towards cryptocurrency has been criticized for imposing unrealistic and unnecessary barriers to frequent traders to follow, with investors asking for a reformed set of guidelines that treats assets digital in the context of practicality.

Now, the Wall Street Journal claims that the classification of cryptocurrency as an investment property theoretically provides a way for investors to recover losses through more favorable taxation. Unlike traditional legal currencies, Bitcoin and other cryptocurrencies are required to tax laws that apply to real estate investments, such as stocks and bonds.

As a result, as digital assets, cryptocurrencies are governed by short-term gains and losses over long-term gains, with the distinction applied to investments held for less than a year. In the first case, a short-term profit tax can reach 40.8% of the profit realized to buy and sell assets in less than a year. Long-term earnings are more favorable to "hodlers", with a 23.8% tax.

While the cryptographers have complained about the tax laws applied to the asset, which works and is bought and sold in a similar way to legal currencies, it allows investors to benefit from the favorable rules applicable to shares and bonds. According to the WSJ report, cryptocurrencies in particular have access to a "strangeness" in the US tax code that allows traders to buy and sell assets immediately without being subject to "sell-off" penalties. Compared to stocks, bonds and other investment properties subject to the aforementioned regulations, cryptocurrency investors are free to execute transactions on assets held for less than thirty days while benefiting from capital deductions.

This small insight, not available to investors in traditional equity and bond markets, led the WSJ to conclude that most cryptocurrency investors would benefit from the sale and repurchase of cryptids for tax collection benefits. Jim Calvin, a CPA and cryptographic specialist for Deloitte Tax, was quoted in the WSJ as advising traders to sell and repurchase assets for a minimum of an hour until a day after a loss in order to recover the benefits Taxes from the assets amortizable.

At the very least, encrypted investors and regular traders can take advantage of the current bear market, in addition to the slight easing of the tax code, to recover part of the losses incurred in 2018.