Recently, a bill titled "Corporate Alternative Minimum Tax" has attracted widespread attention from crypto assets investors. If this bill is passed, it could have a significant impact on U.S. companies currently holding digital assets such as Bitcoin and Ethereum.
Experts analyze that this new tax system may lead some companies to choose to liquidate their crypto assets holdings. The reason is that no investors are willing to bear the extra tax burden without realizing profits, especially in a highly volatile market.
For example, suppose a company purchases Bitcoin, and the book value increases to 100 million USD. According to the new tax system, even if the company has not sold for a profit, it may still need to pay taxes on the unrealized gain of 100 million USD. However, if the price of Bitcoin subsequently falls and the actual profit shrinks to 50 million USD, the company still has to pay taxes based on the previous 100 million USD. In this case, the company is actually bearing an excessive tax burden.
On the other hand, if the price of Bitcoin continues to rise, the company will also need to pay taxes on the newly generated unrealized gains. This tax policy may be viewed by some as unfair to investors.
Currently, the fate of the bill also depends on the attitude of Congress and the political maneuvering of various parties. If the Democrats successfully push the bill through, it may bring some uncertainty to the Crypto Assets market.
Investors and market participants are closely following this legislative process and assessing its potential impact on Crypto Assets investment strategies. In any case, this issue highlights the growing trend of increasing attention to cryptocurrency regulation globally.
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CoffeeNFTs
· 9h ago
Rest assured, the government can always find a reason to collect taxes.
View OriginalReply0
TommyTeacher
· 9h ago
Be Played for Suckers is back again.
View OriginalReply0
AirdropGrandpa
· 9h ago
Indeed, a tax collector demon.
View OriginalReply0
ChainWanderingPoet
· 10h ago
This tax collection method is a bit absurd.
View OriginalReply0
AirdropHunterWang
· 10h ago
It's better to just ban trading directly.
View OriginalReply0
ConfusedWhale
· 10h ago
Just Be Played for Suckers.
View OriginalReply0
WhaleWatcher
· 10h ago
Tax collection is causing a stir in the market again.
Recently, a bill titled "Corporate Alternative Minimum Tax" has attracted widespread attention from crypto assets investors. If this bill is passed, it could have a significant impact on U.S. companies currently holding digital assets such as Bitcoin and Ethereum.
Experts analyze that this new tax system may lead some companies to choose to liquidate their crypto assets holdings. The reason is that no investors are willing to bear the extra tax burden without realizing profits, especially in a highly volatile market.
For example, suppose a company purchases Bitcoin, and the book value increases to 100 million USD. According to the new tax system, even if the company has not sold for a profit, it may still need to pay taxes on the unrealized gain of 100 million USD. However, if the price of Bitcoin subsequently falls and the actual profit shrinks to 50 million USD, the company still has to pay taxes based on the previous 100 million USD. In this case, the company is actually bearing an excessive tax burden.
On the other hand, if the price of Bitcoin continues to rise, the company will also need to pay taxes on the newly generated unrealized gains. This tax policy may be viewed by some as unfair to investors.
Currently, the fate of the bill also depends on the attitude of Congress and the political maneuvering of various parties. If the Democrats successfully push the bill through, it may bring some uncertainty to the Crypto Assets market.
Investors and market participants are closely following this legislative process and assessing its potential impact on Crypto Assets investment strategies. In any case, this issue highlights the growing trend of increasing attention to cryptocurrency regulation globally.