The U.S. Treasury Department is set to ease proposed tax regulations that would have imposed a 15% tax on unrealized Bitcoin gains for companies like MicroStrategy. This move comes under the Corporate Alternative Minimum Tax (CAMT) Act, which mandates large corporations to pay a minimum tax on reported income. Current rules require firms to mark cryptocurrency holdings to market value, taxing paper profits even if assets aren't sold.
Companies such as MicroStrategy and Coinbase have previously argued against taxing unrealized gains, stating it would unfairly force them to liquidate assets to meet tax obligations, thereby disadvantaging them in global markets. The Treasury's decision to relax these rules could exempt these firms from paying billions in taxes on unrealized gains.
US Treasury to Ease Crypto Tax Rules, Benefiting Firms Like MicroStrategy
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