Crypto is to return to being a tax exempt asset. The Arizona State Senant are in the process of having a Bill aimed to make Crypto assets exempt from property taxation. They are relying on Voters to back up this Bill and have it passed in November 2023. On a Federal level, Cryptocurrency is subject to capital gains tax, yet different states may have varying laws surrounding the matter. For example, Florida offers a 0% capital tax on Crypto investments.
To continue on the tax laws around Crypto, the US as a whole are thinking to allow for tax deferrals on Cryptocurrency that goes through a like-kind exchange. Meaning that if the Crypto is traded in for another type of Cryptocurrency and gains are made through doing so, nothing will be considered taxable until the assets are cashed out in fiat currency for the means of spending.
This gives people more freedom to play around with their Cryptoassets and remain reinvesting into other Crypto without the hassle of being taxed on their assets while doing so. This would promote investing and reinvesting, increase investment period, and increase liquidity in the market.
If you would like to speak to a professional on Cryptocurrency and investing, or if you have any questions, please contact us at KXCO.
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