Blockchain News
Taxes on
Cryptocurrency
Effective January
1st, 2018 Continues
Taxes on Cryptocurrency
ew taxes on cryptocurrency have
been announced. Under the Trump
Administration, a $1.5 trillion tax
cut was recently passed. US President Donald
Trump referred to it as, “the largest tax cut
in the history of our country”. Although the
bill is designed to slash tax rates for giant
corporate companies, there has been a great
deal of skepticism around it.
N
The bill also includes taxes on
cryptocurrency. For example, bitcoin to
ether trading transactions will no longer be
exempt from tax. Before this bill, users of
cryptocurrency were taxed, but usually only
28
Core Magazine
when the cryptocurrency was exchanged for
US dollars or any other fiat currency; or, it
was used to purchase an item.
There might have been some ambiguity
about taxes on cryptocurrency, but it seems
like this new bill has made it clear that
cryptocurrency trading will be taxed. Kelsey
Lemaster, a tax lawyer working for Goodwin
Procter LLP, considered the bill to be bad
news for crypto traders because every
transaction they make will be taxed starting
January 1st, 2018. May not be such a great
way to ring in the new year if you’re a crypto
investor.