Visa and MasterCard are trying to help users spend and earn bitcoin, but accountants say these crypto debit and credit cards can lead to confusing tax bills.
Visa, which partners with Circle, BlockFi and Coinbase, told CNBC in July that more than $1 billion worth of cryptocurrency was spent by consumers globally on goods and services through their crypto-linked cards in the first six months of the 2021.
But accountants and financial advisers tell CNBC there is a massive catch. Every time you swipe one of these crypto cards, you're logging a "taxable event." "Some people are like, 'Oh, I'm not selling my crypto, so I don't have to pay capital gains taxes.' But that's completely wrong," said Chandrasekera., meaning that they are taxed in a manner similar to stocks or real property.
"There's no minimum for capital gains. It applies for even a penny of gains or even less than a penny, in the case of a micro transaction," said Neeraj Agrawal of Coin Center, a cryptocurrency policy think tank. Agrawal said a solution in creating a "de minimis exemption" for crypto transactions, similar to what was proposed in the Virtual Currency Fairness Act introduced to the House last year. A de minimis exemption would mean that a set amount, perhaps up to $200, of capital gains for crypto-based transactions would be excluded from the capital gains reporting rule.Some cards, for example, are tied to a user's stablecoin holdings.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
This future 9/11 hijacker used cash, VISA card to pay for practice flight timeIn Florida, Marwan al-Shehhi roomed with flight-school buddy Mohammed Atta. The two men may not have behaved like the 'bad Muslims' of post-9/11 reports.
Leer más »
23 Beauty Products Worth Buying At The Nordstrom Anniversary SaleSkincare and makeup and haircare, oh my.
Leer más »
Australia's NAB to buy Citi's local credit card business in $882 mln dealNational Australia Bank (NAB.AX) will buy Citigroup's (C.N) local consumer unit for about $882.24 million, the companies said Monday, as the American bank exits the region while buy-now, pay-later rivals challenge the old credit card business model.
Leer más »
Bitcoin vs. gold: Here’s what billionaire Ray Dalio thinksBitcoin vs. gold: Here’s what billionaire Ray Dalio thinks. (via CNBCMakeIt)
Leer más »
Senators move to exempt bitcoin, crypto miners from proposed U.S. tax rulesSupporters of the crypto industry in the U.S. Senate filed an amendment to the bipartisan infrastructure bill, which would impose new tax-reporting rules on...
Leer más »
Dev Patel Said He Doesn't Feel 'British Enough' To Play Certain Roles'You're kind of like, 'Where am I allowed to exist?''
Leer más »