{"id":2475,"date":"2017-12-27T01:51:51","date_gmt":"2017-12-27T01:51:51","guid":{"rendered":"https:\/\/www.legitgambling.com\/news\/?p=2475"},"modified":"2017-12-27T10:59:12","modified_gmt":"2017-12-27T10:59:12","slug":"us-tax-reform-bill-a-bad-news-for-cryptocurrency-traders","status":"publish","type":"post","link":"https:\/\/www.legitgambling.com\/news\/us-tax-reform-bill-a-bad-news-for-cryptocurrency-traders\/","title":{"rendered":"US Tax Reform Bill, a Bad News For Cryptocurrency Traders"},"content":{"rendered":"

\"USLast Friday, the US President Donald Trump signed the tax reform bill. While economists continue to argue about the possible impact of the new tax code on the economy, one thing is certain: the first major tax overhaul in over three decades is bad news for crypto currency investors<\/a>. Beginning 2018, all cyptocurrency transactions are taxable, including the exchange of one cryptocurrency for another.<\/p>\n

In the previous tax code, there was a tax exemption for \u201clike kind exchanges.\u201d<\/strong> That means, investors can exchange similar assets without any tax obligation. Until now, the so-called \u201c1031 exchanges<\/a>\u201d were used by traders to exchange assets such as art or real estate, without paying taxes.<\/p>\n

The IRS<\/a> has been treating Bitcoin and other crypto currencies as property for tax purposes, since 2014. Thus, it is necessary to pay capital gains tax when the crypto currency is exchanged for the US dollar or some other fiat currency. If the crypto token is held for less than a year, then it was subject to regular income tax rate of between 10% and 37%, depending on income levels. Crypto currencies held for more than one year are subject to a maximum capital gains tax of 24%.<\/p>\n

Fox Business<\/strong><\/p>\n