The USA’s president, Donald Trump has brought some changes to the economic state to the US, and many of the experts think that the negative influence is bigger than the positive one. But, one recent financial support that he made may have “bought” all of the negative ones so far.
Apparently, his new economic adviser has set his sails on lowering the capital gains tax rate, a move that would guarantee to be a huge boon to cryptocurrency investors. This has come after the previous week, when Trump has announced that he allegedly “tapped” Larry Kudlow to be his new White House economic adviser, fulfilling the sport of Gary Cohn, previous economic adviser for the White House.
Kudlow has previously worked for a Bear Stearns as an economist and as CNBC contributor. In one interview that took place earlier this week he said that he has one goal in front of him, and that is to implement “phase two” of the White House’s tax overhaul, a reform package that he claims it should include a lower capital gains rate, that will gladly be accepted from cryptocurrency investors.
This means that whenever a US resident will choose to dispose of his or her cryptocurrency holdings, the person is supposed to make a record of the transaction made and report it to IRS any gains or losses that were noted during the time of disposal. The highest rate for long-term capital gains is around 20 percent, which also applies to filers who fall into the top 39.6 percent tax bracket ordered for ordinary income.
Previously, when trading cryptocurrency the traders were having problems because it wasn’t a taxable event and it was considered as a “like-kind” exchange. Kudlow is looking forward to changing this policy as he hits the ground on the new working place.