Recently, The Wall Street Journal published an article urging most of the investors residing in the United States to start selling and buying back their assets as a key strategy to save on the looming taxes.
They remarked that this was a grand plan that would help those who had been deeply affected by the Bear market in 2018 which had seen their wallets strain during the key trading periods.
Since August 2011, Cryptos have been experiencing hurdles in the Bear market and among the few solutions to their problems was to capitalize on these taxes to survive come November and December 2018. This came at a perfect time when the United States Tax Authority had regarded cryptocurrency, ranging from bonds to akins, as an ultra-modern form of investment.
Seemingly, currencies were excluded, and this meant that investors were the ones who would benefit the most from these taxable policies in the selected bonds, stocks, and akins among others assets that were termed to be long term.
Short term gains or losses were the worst affected, and they were taxed the highest, 40.8%. On the other hand, long terms gains and losses were least affected, and their rates were cut down to almost half of the short-term gains rating them at 23.8%.
Despite the claims that these tax policies were favorable, cryptocurrency traders still opted to revolt claiming that the policies were unrealistic and as if that was not enough, they chose to challenge these policies in court.
They decided to push for a petition that perhaps would force the government to ease the rules so that they could also benefit and recoup on their losses just like other investors did.
Key figures such as Jim Calvin, a crypto specialist at Deloitte Tax mentioned that a day would be more than enough for the traders to sell then repurchase their assets once they resolved to book losses. This would help them regain through the tax benefits when the Bear market was at its peak.
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