The US Internal Revenue Service (IRS) has announced that it will once again pay more attention to the crypto market. And three proposals have already surfaced online showing what it would look like in the future in the US, and worldwide, with taxes on Bitcoin and Co.
Bitcoin is declared by the IRS not as currency, but as property. Especially microtransactions create big headaches for the tax office. Therefore, the tax regime is facing reform. Reason enough for crypto experts to show us three possible scenarios of Bitcoin taxation:
- No taxes below a limit of $ 600. This option solves the problem of microtransactions, but could lead many to avoid general taxation through transactions below this limit.
- Taxes are currently legally levied on crypto-to-crypto trading pairs and capital gains - a clear double taxation. This could end in taxes being incurred only when cryptos are converted to non-crypto assets.
- Finally, simple by removing the classification to be a "property". This, however, would turn Bitcoin into a currency, putting it under the obligation to act - including on the Bitcoin ETF.
It is even possible that tougher policies may even trigger a capital flight towards anonymous old coins (e.g., Monero).