The Magazine for Asian Investors
On Sunday, January 2, a statement was posted on Invest Man’s Facebook page explaining a tax return form with a list of income from digital assets or crypto assets.
The tax return form used this year will include fields with the words “Any benefits from cryptocurrencies or digital tokens.”
This means all those who have profited from cryptocurrencies or tokens in the last year will have to enter the amount of their own income in the form that will be submitted to the tax authority to calculate the taxes to be paid.
The tax regulation states that if the coins are owned and not yet sold, they cannot be taxed. That means unrealized profit or loss positions are not taxed. Sales at a profit are subject to capital gains tax on cryptocurrencies, which is 15%.
However, both crypto and DeFi traders have talked about the taxation of cryptocurrencies and the ambiguities. These have apparently led to various misunderstandings since the introduction in 2020.
Whether anything should change with regard to crypto taxation, however, remains to be seen on statements from the IRS.