Biden budget proposal to close a crypto tax loophole

[thewayne]

The process is known as washing, wherein people who makes lots of money buy crypto, which loses value, and they take a tax loss. Except they're able to legally buy the same exact brand of cryptocurrency again and go into a wash, rinse, repeat cycle.

Closing this loophole could generate $24billion, I'm not sure if that's annually.

https://www.coindesk.com/policy/2023/03/09/biden-budget-plan-would-close-crypto-tax-loss-harvesting-loophole/

Comments

[kaishin108]

That loophole needs to be closed! :(

[disneydream06]

Wonder what the Repub lead House thinks of that.
LOL!!!!!!!!!!!!!!!!!!!
Hugs, Jon

[thewayne]

Oh, didn't you see today's news?  The collapse of Silicon Valley Bank isn't due to Trump weakening Dodd-Frank and deregulation, or their not managing their bank well, it's because "of Wokeness"!

[disneydream06]

It's never his/their fault. UGH!!!!!!!!!!!!!!!!!!!!!!
Must be so nice to live in such absolute denial. :o

[armiphlage]

Is this any different from any other item with volatile prices, though? Crypto is more volatile and easy to manipulate, but onion or pork belly futures can (and have been) exploited the same way.

This may be another Onion Futures Act, loudly and publicly closing one loophole without inconveniencing the wealthy by addressing any of a thousand other identical loopholes.

https://en.wikipedia.org/wiki/Onion_Futures_Act

[silveradept]

Yet one of the many loopholes that need closing so there are fewer ways for the wealthy to avoid paying in their fair share.

[motodraconis]

Anything that shuts down crypto is a bonus. I fucking hate it, it's as good as burning down a rainforest a day just so people can play with fake money.

[thewayne]

Absolutely agree.

[ndrosen]

I thought there already was a wash sale rule in the tax code, but maybe it doesn’t apply to crypto.

[thewayne]

Crrypto is so unregulated - at the moment - that it wouldn't surprise me if a current rule doesn't fully apply.