The economy of the US is going through quite a tough phase due to the COVID-19 pandemic. Because of this, the administration is taking some significant measures to deal with the situation. Recently, President Donald Trump said in a news conference that his administration is considering capital gains tax cuts. It is being assumed that this proposed tax cut by President Trump administration could prove to be a big win for the crypto industry.
The proposed tax cut could create more jobs
As per President Trump, if the proposed tax cut will be passed, then it is going to create a lot more jobs. Even though the president seems to be quite confident about this tax cut but a debate is going on over this.
All the Americans are required to report both profit and loss that they have incurred from crypto transactions. According to the Internal Revenue Service (IRS), cryptocurrency is a property and not a currency. This is the reason why crypto users will have to report everything related to their crypto. Any person who fails to notify the necessary information regarding their crypto is entitled to penalties and higher interest. The regulator has also specified that if an employee is getting paid by cryptocurrency, that is a direct subject to federal income.
IRS is tracking crypto taxes and getting stricter
For the past few months, it has been seen that the IRS has been actively tracking crypto taxes and becoming stricter in this matter. Now, it has been assumed that if President Trump gets successful in implementing his proposed tax cut, then it is going to be of great relief for the crypto users. Through this, the crypto users will be able to keep an extra gain from their cryptocurrency even after completing the total paperwork.