Members of the crypto community can finally put their minds at rest as a news update from the Internal Revenue Service (IRS) reveals there will be no tax fee on cryptocurrencies without gain.
In the past month, cryptocurrency supporters have commented on taxes on their unsold coins. The news update from the IRS is a relief to the crypto society.
Crypto taxes are not new, as several countries have implemented tax policies on cryptocurrencies. These policies ensure that taxpayers are charged when gains are recorded on their cryptocurrency.
Different countries have different rules and regulations on cryptocurrency. There is no common basis for taxation.
A Recent Case About The Taxation
A reporter with Blockworks, Casey Wagner, wrote about a couple living in Nashville. The couple will receive a refund of the taxes charged on their unsold crypto. Those aware of the issue noted that the couple would get a rebate for gains on tokens not redeemed.
In Wagner’s report, the couples complained to the US District Court in Tennesse on the 26th of May, 2021. In 2019, they bought 8,876 Tezos cryptos and had to pay an income tax of $3,293.
The couple is asking for a refund of the tax paid. Also, the couple asked the court for a $500 tax credit for the income lost.
According to the Internal Revenue Service code, the tokens they bought from Tezos company can only be levied when sold. The newspaper, Blockworks, noted that court filings would be officially made public on the 3rd of February.
There might be other individuals who have a similar issue.
Taxation On Cryptocurrency Globally
With the surge in cryptocurrency adoption by people across the globe, different nations came up with regulations to guide usage. Some of these regulations include placing taxes on crypto gains and transactions.
Earlier this month, India introduced a 30% tax on cryptocurrencies higher than most countries. Also, the Prime Minister of India, Narendra Modi, calls for a joint effort of G20 nations on the regulation of digital assets.
This week, Thailand scrapped the 15% tax it placed on cryptocurrency. This scrapping is due to the backlash the government received after introducing taxation.
Although several nations have introduced taxes on cryptocurrencies, some tax-free countries still exist, such as Switzerland, El Salvador, Belarus, Singapore, and Portugal. Countries like El Salvador have gone to the extent of adopting BTC as a means of payment.
