Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul class="summary-list"><li>Donald Trump courted bitcoin lovers by branding himself the "crypto president."</li><li>The industry hopes his second term will bring regulatory changes and give bitcoin a role in the economy.</li></ul>Donald Trump flipped from <a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets">bitcoin</a> cynic to <a target="_blank" href="https://markets.businessinsider.com/news/currencies/trump-bitcoin-cryptocurrency-election-outlook-crypto-funding-regulation-biden-novogratz-2024-7?utm_medium=ingest&amp;utm_source=markets">"crypto president"</a> and it paid off big.Trump <a target="_blank" href="https://markets.businessinsider.com/currencies/news/trump-bitcoin-commentary-seems-like-scam-against-the-us-dollar-2021-6-1030500598?utm_medium=ingest&amp;utm_source=markets">disparaged digital assets</a> as recently as just a few years ago, describing bitcoin as a scam, and yet his latest electoral win was fueled in no small part by crypto-friendly pledges that unlocked millions in campaign funding.With Trump headed back to the White House, it's now the industry's turn to see if its bets on a second term paid off. Here's what they're want to see. <h2 id="1009b70b-3c95-4408-9e2d-ef2b16069f01">Regulatory overhaul</h2>One of the root themes of Trump's crypto platform is a promise to sweep aside regulatory restrictions that have hung over the industry in recent years.Criticism has been loud over the Biden administration's handling of the sector, characterized by heated confrontations between the Securities and Exchange Commission and major crypto players."Those guys, I mean, they just put so much uncertainty in this entire industry. It was unbelievable. There was no clear guidance, no regulations," said Tim Kravchunovsky, CEO of Chirp, a decentralized telecommunications company.Speaking with Business Insider, he added that regulatory conflict has pushed crypto business out of the US, costing Washington its competitive edge. Matt Mena, crypto research strategist at 21Shares, agreed with that sentiment. "By creating a more welcoming regulatory environment, this approach could draw back projects and founders who have left the country due to regulatory uncertainty, generating thousands of new jobs and millions in tax revenue, bolstering the economy while advancing the crypto sector," he told BI over email.To this end, the industry anticipates that Trump will replace regulatory heads with more crypto-friendly people. The president-elect is already surrounded by such figures, Mena said, such as Elon Musk, JD Vance, Robert F. Kennedy, and Howard Lutnick.Meanwhile, to make Trump's plan of turning the US into a "crypto hub" possible,Kravchunovsky suggested that Washington could provide incentives such as federal grants and tax cuts.<h2 id="b1a4e172-d8a3-4ea3-b022-1a29b3897ab5">Crypto bills</h2>On the legislative front, crypto players will also be watching for the repeal of SAB 121 and the passage of several key bills,SAB 121, an SEC policy document <a target="_blank" href="https://content.next.westlaw.com/practical-law/document/Idfd9dfac273211ef8921fbef1a541940/President-Biden-Vetoes-Legislation-Rescinding-SEC-Staff-Accounting-Bulletin-121-SAB-121-on-Crypto-Custody?viewType=FullText&amp;transitionType=Default&amp;contextData=(sc.Default)">kept in place by the Biden administration</a>, discourages US lenders from acting as crypto custiodians, given that it requires them to hold an equivalent amount of cash against their crypto holdings. It's removal would free institutional investors to further adopt digital assets.Mena also cited anticipation around FIT21, an act aiming to clarify the regulatory roles around digital assets. Consumer protections would also strengthen under this bill, he said.Meanwhile, Trump's administration could accelerate progress on three meaningful pieces of stablecoin legislation, which aim to set up guardrails around future stablecoin issuance. These dollar-pegged crypto assets are increasingly used for purposes similar to traditional finance, Standard Chartered said in a note on Friday.<h2 id="eae31105-86db-4e91-9d15-cfc75e92738f">A bitcoin reserve?</h2>Since Trump's victory, speculation has jumped that a strategic bitcoin reserve could be in on the way. Though the President-elect has not specifically voiced such a plan, the idea that his administration would buy bitcoin as a reserve asset has created enthusiasm among crypto bulls."We're already seeing that that [crypto's] gaining trust, and it's gaining trust within institutions and countries. More and more countries are adopting it. So I don't think it's a matter of years. I think it's a matter of months," Kravchunovsky said.Mena sees the price of bitcoin soaring to $1 million "almost overnight," if a strategic reserve were to be established. The scenario would prompt other nations to build up their own reserves, pushing bitcoin's total market cap 13 times higher. Meanwhile, Standard Chartered head of FX research Geoff Kendrick considers a bitcoin reserve fund as a high-impact development with a low probability of happening for now. Investors should instead pay attention to Trump's separate promise to cease all sales of government bitcoin. If this happens, that could mean a sizeable upswing in the price of the token, he wrote.<h2 id="6a25764b-b3fc-4a7c-a689-ece320390cd4">Crypto's time to shine</h2>In whatever way the industry changes under Trump, one thing feels certain: the election has cemented the crypto markets place in the mainstream."Crypto is now essentially legal in the U.S., marking a major turning point for the industry," Mena wrote.According to Kendrick, crypto-friendly adjustments have the potential to drive the total market value of the cryptocurrency market to $10 trillion by the end of 2026, a major jump from the current $2.5 trillion level.He reiterated his expectation that bitcoin will hit $200,000 by the next year's end.

What the crypto market actually wants from a Trump presidency

<ul class="summary-list"><li>Two crypto moguls' joint wealth rose by about $15 billion on the back of Trump's election victory.</li><li>Binance's Chaopeng Zhao and Coinbase CEO Brian Armstrong added about $12 billion and $2.6 billion each.</li></ul>Two cryptocurrency tycoons saw a near-$15 billion boost to their combined wealth on Wednesday as Donald Trump <a target="_blank" class="" href="https://www.businessinsider.com/donald-trump-wins-presidential-election-race-2024-11">won the presidential election</a>.<a target="_blank" class="" href="https://www.businessinsider.com/zhao-changpeng-binance-billionaire-crypto-mcdonalds-fast-food-wealth-lifestyle-2022-10">Changpeng Zhao</a>, who founded Binance and owns an estimated 90% of the world's largest cryptocurrency exchange, saw his net worth soar by about $12 billion or 30% to roughly $53 billion, propelling him into 25th place on the Bloomberg Billionaires Index.Zhao was the second-biggest wealth gainer for the day, behind only <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk">Elon Musk</a> who became <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/billionaires-net-worth-trump-stock-market-nvidia-tesla-2024-11">grew $26.5 billion richer</a> as Tesla stock soared. The man known as "CZ" resigned as Binance CEO in November 2023 and was incarcerated <a target="_blank" class="" href="https://www.businessinsider.com/former-binance-ceo-sentenced-to-four-months-in-prison-2024-4">for four months</a> this year after pleading guilty to charges that Binance broke anti-money laundering rules.Brian Armstrong, CEO and cofounder of crypto exchange Coinbase, saw his net worth jump by about $2.6 billion or 30% on Wednesday to reach $11 billion, per the Bloomberg list.<div type="image" title="Coinbase CEO Brian Armstrong" height="683" width="1024" msid="115058274" hostid="261" sizebytes="35564"></div><a target="_blank" class="" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a>, the most popular crypto, <a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/bitcoin-price-record-high-crypto-trump-trade-us-presidential-election-2024-11">surged to record highs</a> of about $75,000 on hopes that digital currencies will face an <a target="_blank" class="" href="https://www.businessinsider.com/cryptocurrency-bitcoin-influence-election-trump-harris-2024-10">easier regulatory environment</a> under Trump. Ethereum, Solana, Ripple, Dogecoin, and other tokens have also jumped following the former president's reelection.The Republican candidate's decisive victory over his Democratic rival, Kamala Harris, has relieved concerns in financial markets about a contested election outcome and fueled excitement about Trump's proposed tax cuts and deregulation.One result was the world's 12 richest people grew more than $70 billion richer in a single day, per Bloomberg's wealth rankings. Musk led the charge but Oracle's <a target="_blank" class="" href="https://www.businessinsider.com/larry-ellison">Larry Ellison</a> also gained about $10 billion, while Berkshire Hathaway's <a target="_blank" class="" href="https://www.businessinsider.com/how-warren-buffett-spends-money-net-worth">Warren Buffett</a> and Amazon's <a target="_blank" class="" href="https://www.businessinsider.com/jeff-bezos-life-career-education">Jeff Bezos</a> gained more than $7 billion each.All but one of the 12 individuals have become wealthier this year. LVMH CEO <a target="_blank" class="" href="https://www.businessinsider.com/who-is-bernard-arnault-owner-louis-vuitton-lvmh-net-worth">Bernard Arnault</a> is down $34 billion as signs of a luxury slowdown grow. Exclude him and his 11 peers have grown a combined $505 billion richer this year — a figure that exceeds the market value of Oracle ($502 billion).

2 crypto tycoons are almost $15 billion richer after Trump's election victory

<ul class="summary-list"><li>Donald Trump's presidential win boosted his social media company, Tesla, and crypto stocks.</li><li>Banking stocks also gained, while clean-energy stocks tumbled.</li></ul>Donald Trump's victory in the presidential election <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/trump-trade-us-presidential-election-dollar-treasuries-stocks-crypto-djt-2024-11">boosted shares</a> of his social media company, <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk">Elon Musk</a>'s Tesla, and a slew of cryptocurrency stocks in premarket trading on Wednesday.The former president's reelection sent renewable-energy stocks tumbling as traders bet his administration would be <a target="_blank" class="" href="https://www.businessinsider.com/biden-trump-climate-policies-ev-subsidies-renewables-fossil-fuel-drilling-2024-7">less friendly</a> in terms of subsidies and regulation.Shares of Trump Media &amp; Technology Group surged as much as 62% to $55 as investors wagered Truth Social's parent company, which counts Trump as its <a target="_blank" class="" href="https://www.businessinsider.com/donald-trump-truth-social-tmtg-stock-wealth-election-harris-x-2024-9">largest shareholder</a>, would benefit from his second term. The stock — which has Trump's initials, DJT, as its ticker — was trading 37% higher at last check.If the gain holds, Trump would be about $1.3 billion richer on paper given his near-53% stake in the company.Tesla stock rose 15% in premarket trading and was poised to open at its highest level in more than a year. Musk, the electric-vehicle maker's CEO, has <a target="_blank" class="" href="https://www.businessinsider.com/trump-praises-elon-musk-a-star-is-born-2024-11">emerged</a> as one of Trump's most vocal champions and closest advisors.Crypto stocks jumped on the prospect of a <a target="_blank" class="" href="https://markets.businessinsider.com/news/currencies/bitcoin-price-record-high-crypto-trump-trade-us-presidential-election-2024-11">friendlier US regulatory environment</a> under Trump. Coinbase and MicroStrategy both rose 13% in Wednesday's premarket. Bitcoin, the most popular crypto, climbed past $75,000 for the first time on election night before paring gains.<h2 id="b91524b5-c53d-4ab4-9fae-d43ef3d76f42">Boost for banks</h2>Conventional financial stocks also gained with Bank of America, JPMorgan, Wells Fargo, Goldman Sachs, Morgan Stanley, BlackRock, Blackstone, and KKR rising between 6% and 9% in the US premarket.Traders expect Wall Street banks, asset managers, and private equity firms to benefit from tax cuts and deregulation under Trump.In contrast, clean-energy stocks slid with Plug Power, SunRun, First Solar, and Enphase Energy all dropping at least 10% in premarket trading. Danish wind turbine manufacturer Orsted and rival Vestas fell 10% and 8% respectively in Frankfurt trading.The declines likely reflect concerns that Trump's reelection will lead to the repeal of the Inflation Reduction Act passed by the Biden administration, which provided large-scale tax credits for renewable-energy providers.The broader stock market gained before the open with futures underlying the S&amp;P 500 and Dow Jones Industrial Average climbing more than 2.3%, while Nasdaq 100 futures rose 1.8%.

Trump Media, Tesla, and crypto stocks surge as Trump wins — and clean energy companies tumble

<ul class="summary-list"><li>"Bitcoin Jesus" Roger Ver was arrested in Spain on charges of tax evasion this week. </li><li>The DOJ says Ver dodged $48 million in taxes owed to the IRS. </li></ul>Veteran crypto trader Roger Ver, also known as "bitcoin Jesus," was arrested in Spain and charged by the US Department of Justice with evading $48 million in taxes. According to a <a href="https://www.justice.gov/usao-cdca/pr/early-bitcoin-investor-known-bitcoin-jesus-indicted-allegedly-committing-tax-fraud-and" target="_blank" rel="noopener">press release</a> from the Justice Department on Tuesday, Ver was arrested in Spain last weekend on criminal charges, with authorities set to seek extradition for his trial in the US.Ver faces three charges of mail fraud, two charges of tax evasion, and three charges of subscribing to a false tax return. These allegations are said to have resulted in a minimum loss of $48 million in taxes due to the IRS. The DOJ says that when Ver renounced his US citizenship and became a citizen of St. Kitts and Nevis on February 4, 2014, he and his US-based companies — MemoryDealers and Agilestar — collectively owned approximately 131,000 bitcoins that valued at $871 each, with the companies allegedly holding about 73,000 of them.However, the DOJ said Ver didn't comply with the US law to file taxes and report the market value of worldwide assets and pay an "exit tax" on capital gains. "Bitcoin Jesus" also allegedly gave false information to a law firm and appraiser, which resulted in undervaluing his assets by not disclosing the true number of bitcoins he and his companies owned, including an underestimation of his personal holdings.The Justice Department claims that Ver's two companies retained about 7,000 bitcoins by June 2017, and Ver purportedly sold tens of thousands of them for around $240 million in cash. Additionally, he was legally obliged to report and pay taxes on distributions, despite not being a US citizen at that time.Ver, who was an early cryptocurrency evangelist, has been avidly promoting bitcoin for years, earning him the "Bitcoin Jesus" moniker. Also this week, <a href="https://www.businessinsider.com/former-binance-ceo-sentenced-to-four-months-in-prison-2024-4">Binance's former boss Changpeng Zhao</a> was sentenced to four months over the exchange's violation of anti-money laundering rules. His sentencing comes a little over a month after former <a href="https://www.businessinsider.com/sam-bankman-fried-sentenced-prison-ftx-alameda-research-2024-3#:~:text=Sam%20Bankman%2DFried%20has%20been,still%20tried%20to%20shift%20blame.">FTX boss Sam Bankman-Fried</a> was sentenced to 25 years for defrauding customers.

Crypto investor 'bitcoin Jesus' arrested and charged by the Justice Department with $48 million tax evasion

Here’s what investors need to know about the cryptocurrency tax

<ul><li>Government is planning to bring changes to income tax laws to bring cryptocurrencies under the tax net in Budget 2022.</li><li>Also, it is likely to introduce a bill on cryptocurrencies during the Winter Session of Parliament.</li><li>This comes amid a rising number of advertisements, featuring even film stars, promising easy and high returns on investments in cryptocurrencies.</li></ul>The government is mulling changes in the income tax laws to bring cryptocurrencies under the tax net, with some changes that could form part of the budget next year, a top official said. Revenue secretary <keyword id="947916" type="General" weightage="20" keywordseo="tarun-bajaj" source="Orion">Tarun Bajaj</keyword> said that in terms of income tax, some people are already paying capital gains tax on the income from cryptocurrency, and in respect of goods and services tax (GST) also the law is "very clear" that the rate would be applicable as those in case of other services. <cmsannotation type="cmsannotation" annotationid="wazirx" comment="wazirx" text="wazirx">wazirx</cmsannotation> "We will take a call. I understand that already people are paying taxes on it. Now that it has really grown a lot, we will see whether we can actually bring in some changes in law position or not. But that would be a budget activity. We are already nearing the budget, we have to look at that point of time," Bajaj told PTI in an interview. Asked if a provision of TCS (tax collected at source) could be introduced for crypto trading, the secretary said "if we come up with a new law then we will see what is to be done". "But yes, if you make money you have to pay taxes... We have already got some taxes, some have treated it as an asset and paid capital gains tax on it," he said. Asked whether people involved in cryptocurrency trading would be categorized as facilitator, brokerage and trading platform and how the taxation would be done under GST, Bajaj said "there would already be such things available in other services also. So whatever GST rate they are taxed at, that will be applicable on them." "They have to get themselves registered. The GST law is very clear. If there is an activity, if there is a broker who is helping people and charging brokerage fee, GST would get charged," he said. Separately, the government is likely to introduce a bill on cryptocurrencies during the Winter Session of Parliament beginning November 29, amid concerns over such currencies being allegedly used for luring investors with misleading claims. Notably, there have been a rising number of advertisements, featuring even film stars, promising easy and high returns on investments in cryptocurrencies in recent times. Currently, there is no regulation or any ban on use of cryptocurrencies in the country. Against this backdrop, Prime Minister Narendra Modi, last week, held a meeting on cryptocurrencies with senior officials and indications are that strong regulatory steps could be taken to deal with the issue. Earlier this week, the Standing Committee on Finance, chaired by BJP member Jayant Sinha, met the representatives of crypto exchanges, block chain and Crypto Assets Council (BACC), among others, and arrived at a conclusion that cryptocurrencies should not be banned, but it should be regulated. The RBI has repeatedly reiterated its strong views against cryptocurrencies saying they pose serious threats to the macroeconomic and financial stability of the country and also doubted the number of investors trading on them as well as their claimed market value. RBI governor Shaktikanta Das too earlier this month had reiterated his views against allowing cryptocurrencies saying they are a serious threat to any financial system since they are unregulated by central banks. The Supreme Court in early March 2020, had nullified the RBI circular banning cryptocurrencies. Following this on February 5, 2021, the central bank had instituted an internal panel to suggest a model of the central bank's digital currency. The RBI had announced its intent to come out with an official digital currency, in the face of proliferation of cryptocurrencies like Bitcoin about which the central bank has many concerns. Private digital currencies/virtual currencies/crypto currencies have gained popularity in the past one decade or so. Here, regulators and governments have been sceptical about these currencies and are apprehensive about the associated risks. It can be noted that on March 4, 2021, the Supreme Court had set aside an RBI circular of April 6, 2018, prohibiting banks and entities regulated by it from providing services in relation to virtual currencies. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/phonepe-announces-esop-buyback-worth-135-crore-for-employees/articleshow/87802097.cms">PhonePe announces ESOP buyback worth ₹135 crore for employees</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/what-is-bitcoin-golden-cross-and-death-cross/articleshow/87796591.cms">Bitcoin investors love the golden cross and death cross — here’s why they matter but there are other factors to keep in mind</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/mindhouse-raises-6-million-in-seed-funding-led-by-binny-bansal/articleshow/87798613.cms">Flipkart's Binny Bansal bets on Zomato cofounder's two-year-old venture</a>

Government plans to tax cryptocurrency gains in Budget 2022

<ul class="summary-list"><li>A Celsius Network customer was hit with a $67,000 tax bill for funds lost by the bankrupt lender.</li><li>Doug Stringer had more than $2 million tied up with the lender when it froze withdrawals.</li></ul>A Celsius Network customer was hit with a $67,000 tax bill on funds lost in the crypto lender's bankruptcy last year, as tax filings bring up grim memories and new complications for wronged investors.Bloomberg reported that Doug Stringer, a customer from San Antonio, Texas, had invested more than $2.8 million in Celsius Network prior to its <a href="https://markets.businessinsider.com/news/currencies/crypto-crash-celsius-network-bankruptcy-bitcoin-ethereum-plummet-alex-mashinsky-2022-7">bankruptcy filing last July</a>.He lost all of his money in the platform when it <a href="https://markets.businessinsider.com/news/currencies/celsius-price-crash-crypto-market-outlook-bitcoin-ethereum-terra-luna-2022-6">halted withdrawals last June</a>, a month prior to its Chapter 11 filing. But because the Inland Revenue Service (IRS) taxes interest earnings through a <a href="https://www.irs.gov/forms-pubs/about-form-1099-misc" target="_blank" rel="noopener">1099 form</a>, Stringer and other Celsius investors are finding themselves forced to pay levies on funds that are still hypothetically locked in inaccessible accounts."I put all my eggs in one basket," Stringer, whose investment was worth $10 million at one point, told Bloomberg. "And I'm wiped out."The 63-year-old, who works in private equity, said it had put off his retirement plans.A <a href="https://markets.businessinsider.com/news/currencies/celsius-operated-a-different-company-to-the-one-it-advertised-filing-2023-1">Ponzi probe into Celsius</a> found the bankrupt lender misled customers on the nature of its business, and used client funds to prop up the value of its native token in a bid to maintain its promise of high-interest returns. Because of a widespread collapse in crypto valuations last year, investors are unlikely to face capital gains taxes. But it shines a further spotlight on lending programs offered by crypto companies.The "staking" program, which promised high-interest returns if investors locked in funds and <a href="https://markets.businessinsider.com/news/currencies/what-is-crypto-staking-kraken-sec-settlement-penalty-gary-gensler-2023-2">has faced scrutiny from the SEC</a>, means interest charges have be high.Roman Smolkin, a 43-year-old software designer, told Bloomberg he was drawn to Celsius by the double-digit yields it promised investors on certain offerings, and piled more than $200,000 into the exchange.Now, those high-interest promises have landed him an $8,000 tax bill."I'm honestly freaking out," Smolkin told Bloomberg. "It's beyond frustrating — I lost the entire thing that earned the interest to begin with."The IRS told Bloomberg it was aware of the issue, but decline to comment. A spokesperson for the IRS told Insider that was still the case as of Thursday morning.

Celsius customer received $67,000 tax bill for funds lost in crypto lender's bankruptcy, report says

Now, we all know that any profit made from trading in cryptocurrencies will be <a href="https://www.businessinsider.in/budget/news/from-cryptocurrencies-to-nfts-india-to-tax-all-virtual-digital-assets-at-30/articleshow/89268587.cms">taxable at 30%</a>. But that’s just the beginning. There’s a lot more that India’s Finance Minister didn’t say, than what she said. The way the government is treating <keyword id="2721952" type="General" weightage="100" keywordseo="crypto" source="Orion">crypto</keyword> traders in the same way it treats gamblers or lottery enthusiasts. We can’t stop you, so we’ll tax you so much that it might break your spirit. <div type="image" title="30% tax on virtual digital assets" msid="89461919" hostid="261"></div> Crypto critics would say that it is the right thing to do because whether it’s <a href="https://www.businessinsider.in/investment/news/bitcoin-ethereum-and-others-have-lost-nearly-40-percent-since-their-record-highs-but-investors-are-still-better-off-than-they-were-a-year-ago/articleshow/88823379.cms">Bitcoin, Ethereum or Solana</a>, they can’t be used as currency. Those who buy any coin or non-fungible token (<a href="https://www.businessinsider.in/investment/news/15-most-expensive-nfts-of-2021-by-pak-beeple-cryptopunks-and-others/slidelist/88540923.cms">NFT</a>) are just hoping that someone else will buy it at a higher price. If that’s not a gamble, then what is. If the argument is that cryptos are inevitable in the <keyword id="50691" type="General" weightage="50" keywordseo="digital" source="Orion">digital</keyword> era, the government is anyway looking to get the <a href="https://www.businessinsider.in/budget/news/digital-rupee-to-be-introduced-by-the-rbi-confirms-fm-nirmala-sitharaman-speech/articleshow/89268343.cms">digital rupee</a> out in the market this year. So, for them, there isn't a lot of love or trust left to lose. <a href="https://www.instagram.com/p/CZejH5-KZjw/" data-type="tilCustomLink" target="_blank">What is Digital Rupee?</a> That's evident in the 1% tax to be deducted at source (<keyword id="17506" type="General" weightage="20" keywordseo="tds" source="Orion">TDS</keyword>). Every time someone buys crypto they have to deduct a 1% tax on the value of the sale. The question is, why is the government asking for TDS? <div type="image" title="Why is the govt asking for TDS?" msid="89461993" hostid="261"></div> It basically wants to track <a href="https://www.businessinsider.in/investment/news/bitcoin-does-not-make-payments-anonymous-just-really-hard-to-trace/articleshow/85068905.cms">crypto transactions</a> itself, instead of relying on data provided by the exchanges. And, therefore, find out who are the people buying and selling cryptos, how much are they buying/selling, and maybe even, what else they do, financially speaking. These are important signs for you to keep in mind before putting more money into these ‘virtual digital assets’ before the <a href="https://www.businessinsider.in/cryptocurrency/news/no-india-crypto-bill-in-sight-even-after-winter-session-of-parliament-comes-to-a-close/articleshow/88449161.cms">crypto bill</a> makes it through the <keyword id="6354721" type="General" weightage="20" keywordseo="parliament" source="Orion">Parliament</keyword>. Policymakers don’t like crypto — if you didn’t know by now, you should. So, expect very little empathy, and an even lesser amount of mercy if the taxman comes calling. For now, the good news is that the new 30% tax kicks in only from April 1. Until then, you may still have to pay the tax on capital gains ⁠— long-term or short-term ⁠— or business income <a href="https://www.businessinsider.in/investment/news/cryptocurrency-faqs-everything-you-need-to-know-about-the-cryptocurrencies-the-crypto-market-and-everything-in-between/articleshow/87465186.cms">as the case may be</a>. Tightening the noose around crypto can achieve one more thing ⁠— move more money into the stock market. Here’s how. <div type="image" title="There are messages hidden in the crypto tax" msid="89462135" hostid="261"></div>

SIMPLY PUT: There are messages hidden in the crypto tax

<ul class="summary-list"><li>After a year of wild gains and volatile trading in <keyword id="11893898" type="UNKNOWN" weightage="60" keywordseo="crypto" source="Orion">crypto</keyword>, it's time to pay the tax man. </li><li>Insider spoke to two experts who broke down what investors can expect ahead of filing.</li><li>Taxes paid on crypto are complicated but not impossibly so. </li></ul><keyword id="12940999" type="UNKNOWN" weightage="60" keywordseo="tax-season" source="Orion">Tax season</keyword> has arrived and crypto investors who went along for 2021's wild ride are likely starting to think about what it means for their portfolios. As with other investments like stocks, if you bought any <keyword id="11948247" type="UNKNOWN" weightage="60" keywordseo="digital-asset" source="Orion">digital asset</keyword> and held onto it, you don't have to do anything, said <a href="https://www.withersworldwide.com/en-gb/people/charles-s-kolstad">Charles Kolstad</a>, a partner at law firm Withers who focuses on crypto assets and blockchains. However, once you process a transaction, it immediately becomes a taxable event. This includes selling your crypto, exchanging it with one token to another, mining crypto, and earning interest on your asset, among other things.And while the Internal Revenue Service has published a thorough list of <a href="https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions">46 frequently asked questions</a> on its website, the agency still lacks a detailed list of crypto transactions, said Olya Veramchuk, director of tax solutions at Lukka, a crypto-asset data and software provider."The current crypto guidance is so limited, it's always best for taxpayers to understand exactly what type of transactions they've engaged in and then try to analogize them into the existing framework," Veramchuk told Insider. She explained that different kinds of transactions generate different types of taxes. For instance, selling a crypto asset may trigger capital gains tax, while more advanced activities from staking to yield farming might yield taxes on ordinary income.Then there are gains from certain transactions that do not neatly fall under any particular category such as wrapping tokens, contributing to and withdrawing from liquidity pools, bridging multichain assets, among others, which she <a href="https://lukka.tech/lukkas-brief-user-guide-crypto-taxes/">detailed in a blog post</a>. This is why Veramchuk advises taxpayers to consult experts if they are unsure. The <keyword id="6359816" type="UNKNOWN" weightage="60" keywordseo="irs" source="Orion">IRS</keyword> first released its <a href="https://www.irs.gov/pub/irs-drop/n-14-21.pdf">guidance</a> on virtual currencies in 2014, indicating that these must be treated as assets — not currency — for federal income tax purposes. Still, it was only in 2019 when the agency asked about crypto in a <a href="https://www.irs.gov/pub/irs-prior/f1040s1--2019.pdf">Schedule 1 form</a> and only in 2020 when they placed the <a href="https://www.cnbc.com/2021/02/24/failure-to-report-crypto-on-tax-returns-can-lead-to-trouble-with-irs.htmlhttps://www.irs.gov/pub/irs-pdf/f1040.pdf">question</a> prominently in form 1040, the documents US taxpayers use to file their annual income tax return.<div type="image" title="Part of Form 1040" height="294" width="814" msid="89370147" hostid="261"></div>Kolstad said he often gets asked whether the IRS is clamping down on these so-called "tax gaps," or the difference between what a taxpayer pays and what they owe. IRS Commissioner Charles Rettig in <a href="https://www.c-span.org/video/?510750-1/senate-finance-committee-hearing-2021-tax-filing-season">April 2021</a> estimated that the yearly tax gap could exceed $1 trillion. "What I tell them is the IRS may be slow, but they're not stupid," Kolstad told Insider, referring to clients who ask him about the agency's perception of such gaps. "That's why they put it up on the front page so that nobody could say, 'oh, I didn't know.'"He broke down three general types of income crypto investors need to know:<ol><li>Ordinary income - the returns on activities such as staking and mining</li><li> Short term capital gains - assets held less than a year and are taxed at ordinary income rates</li><li>Long term capital gains - assets held for more than a year and are taxed at reduced tax rates</li></ol>Once you have identified your type of income, Veramchuk explained the different accounting methods you can use to calculate your capital gains or losses.There is the "highest in, first out" (HIFO) method, which lets the investor sell the asset at the highest cost they bought it to reduce any capital gains. There's also the "first in, first out" (FIFO), which she said the IRS defaults to, as well as the "last in, first out" (LIFO) method, which takes the purchase of the most recently bought assset as the first to be expensed.Taxpayers can use any method. What's important, she said, is the thoroughness of your record keeping."The crypto industry is anxiously awaiting the guidance from the IRS and the <keyword id="11948119" type="UNKNOWN" weightage="60" keywordseo="treasury" source="Orion">Treasury</keyword> because the crypto ecosystem is growing so rapidly," Veramchuk said. "Many people would love to be as precise as possible in their reporting, but we need a more detailed framework."In 2021, the total crypto market cap briefly topped a record $3 trillion, with <keyword id="11893902" type="UNKNOWN" weightage="60" keywordseo="bitcoin" source="Orion">bitcoin</keyword> peaking near $69,000 to its all-time high in November.Tax season kicked off on <a href="https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline">January 24</a> and closes on April 18 for most taxpayers.

You Searched For "tax on crypto gains" and got 9 results

What the crypto market actually wants from a Trump presidency

Filip De Mott

2 crypto tycoons are almost $15 billion richer after Trump's election victory

Theron Mohamed

Trump Media, Tesla, and crypto stocks surge as Trump wins — and clean energy companies tumble

Theron Mohamed

Crypto investor 'bitcoin Jesus' arrested and charged by the Justice Department with $48 million tax evasion

Yuheng Zhan

Here’s what investors need to know about the cryptocurrency tax

Business Insider India

Government plans to tax cryptocurrency gains in Budget 2022

PTI

Celsius customer received $67,000 tax bill for funds lost in crypto lender's bankruptcy, report says

Ryan Hogg

SIMPLY PUT: There are messages hidden in the crypto tax

Tax season has arrived. Here is what it means for crypto investors who rode the rollercoaster through last year's wild market.

Isabelle Lee

Popular Keywords

Buying Guides