Tax Paying Americans Owe $25 Billion in Cryptocurrency
The tax season in the United States is here, and many citizens who use or keep secret cryptic around are trying to figure out how to pay capital gains taxes. According to a report from analyst Tom Lee of Fundstrat, the ciphers accounted for about 20 percent of their net profit last year in the United States.
Cryptocurrency Selling pressure from sales related to taxes
Deposits are a major investment last year, and taxpayers are interested in individuals who have made a profit. The reason for this is that the US Internal Revenue Service (IRS) handles escrow as a commodity-like investment vehicle, subject to national tax laws. In addition, nearly all currency transactions or other monetary transactions, including firefighting, transactions, spending and most types of exchanges, are considered to be Must pay taxes to US citizens.
Fundstrat’s Tom Lee believes that Americans owe a lot of money for their cryptocurrency investments in 2017, with a capital increase of about $ 25 billion. This means that in all types of traditional investment vehicles such as securities, shares and precious metal metals the profit tax increase is estimated to be over 20 percent under Lee’s results. Lee detailed that the current market incurring digital costs may have been made by tax-related revenue this year.
“We believe that selling pressure has been boosted by the increase in capital related to sales this year,” Lee explained in his memo.
If this is correct, we will see an impetus for improvement after April 15. We still like bitcoin and big stocks and while we think the bear market of the altcoins is largely over, we do not. See upward trend for altcoins until mid-August.
Americans Ole about 25 billion dollars in profits tax increase
Lee’s estimates stem from the $ 590 billion cryptocurrency market valuation accrued last year, 60 times more than the previous year. The consultant Fundstrat claims that about 30 percent of digital property owners worldwide are American, and this means a representative of about $ 187 billion. Lee believes that capital gains in the United States increased by $ 92 billion and $ 25 billion in tax liabilities on the line.
In addition, Lee revealed that his research shows that there is an increase in the pressure of semi-secret exchanges. Lee’s analysis explains: “This is a huge flow from crypto to dollars and historical estimates are that every $ 1 dollar outflow is $ 20 to $ 25 affecting the crypto market value.
We believe there will be selling pressure from ciphers that are subject to income tax at US legal entities.
According to Lee’s estimates, the huge flow of digital sales comes back to fiat being timed in the tax season in the United States. Although Lee and Fundstrat believe the tax situation could amplify the current “Crypto Winter”, the team still has a very optimistic outlook on the value of the BTC in 2018. Fundstrat and Lee predict that BTC prices will outpace passed the highest level last year and touched $ 25,000 USD at the end of the year.