Biden Budget Plan To Close Crypto Tax Loophole For Loss Harvesting
Crypto investors could see changes to tax loss harvesting as U.S. President Joe Biden proposes to close a loophole, raising up to $24 billion and lowering the deficit by $3 trillion, as per Coindesk. Find out what this means for the industry and why it matters. U.S. President Joe Biden’s 2023 proposed budget, to be announced Thursday.
Currently, crypto investors can claim losses on their taxes by selling cryptocurrencies at a loss and buying the same amount and type of cryptocurrencies again. The proposed provision would aim to reduce wash sales trading by crypto investors and is expected to raise up to $24 billion, according to the Wall Street Journal. The proposed budget lays out Biden’s fiscal priorities and aims to lower the U.S. deficit by $3 trillion over the next decade. The provision would need to pass through the House of Representatives and the Senate before it can go to the president’s desk for his signature. This isn’t the first time lawmakers have tried to close this loophole.
Source
@CryptoWorldAnalysis
