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The Inside Income Service (IRS) has up to date the crypto part within the 2022 draft directions for tax type 1040. “For instance, digital property embody non-fungible tokens (NFTs) and digital currencies, resembling cryptocurrencies and stablecoins,” the tax company detailed.
The Inside Income Service (IRS) launched its 2022 draft directions for tax type 1040 final week. Kind 1040 is the tax type used for submitting particular person revenue tax returns within the U.S. The brand new directions include a number of modifications referring to cryptocurrency.
The part titled “Digital Foreign money” has been changed with one titled “Digital Property.” The IRS detailed:
Digital property are any digital representations of worth which might be recorded on a cryptographically secured distributed ledger or any comparable know-how. For instance, digital property embody non-fungible tokens (NFTs) and digital currencies, resembling cryptocurrencies and stablecoins.
In distinction, NFTs and stablecoins weren’t talked about within the 2021 directions for tax type 1040.
The directions clarify that taxpayers should examine the “Sure” field subsequent to the query on digital property on web page 1 of the tax type 1040 if at any time throughout 2022, they “acquired (as a reward, award, or cost for property or companies)” or “bought, exchanged, gifted, or in any other case disposed of a digital asset (or any monetary curiosity in any digital asset).”
The 1040 draft tax type for the yr 2022 was launched in August.
Matt Metras, an enrolled agent and cryptocurrency tax specialist at MDM Monetary Providers in Rochester, New York, was quoted by CNBC as saying Monday:
I feel that’s a great change. Individuals who commerce issues like NFTs wouldn’t consider that as a digital forex.
He added that the IRS’ “broader language” might embody new classes, resembling taxpayers receiving digital property from “play-to-earn video games.” Metras famous: “The IRS is at all times going to be behind the eight ball as a result of they only can’t sustain with how briskly the crypto house is altering.”
Miles Fuller, head of presidency options at Taxbit and former senior counsel with the Workplace of Chief Counsel on the IRS, was quoted by Bloomberg as saying:
The IRS is ramping up by coalescing their terminology round this digital asset time period.
“So it implies that it’s extra possible than not within the close to future, we’re gonna see these regs come out and the IRS persevering with to maneuver ahead with type of implementation of a regulatory regime,” he opined. “Most likely sooner somewhat than later.”
What do you concentrate on the IRS’ revised crypto-related directions? Tell us within the feedback part under.
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ZIUM
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Donald Trump is making news once more, but this time it’s not for political reasons; it’s about cryptocurrency. As he prepares to return as the 47th President of the United States, Trump will become the first sitting president to own meme currencies, a decision that has stirred both enthusiasm and skepticism in the crypto community.
Recent sources claim that Trump’s crypto wallet consists largely of meme coins and is valued roughly $8 million. Among the assets are $1.5 million in a meme currency with Trump-themed design and $5.5 million in TROG tokens.
In addition, he has about 1.3 billion GUA coins, which amounts to nearly $400,000, and $167,000 in TRUMPIUS tokens. This is a first of its kind, where Trump becomes an oddity in the world of politics and cryptocurrency, considering his earlier reluctance towards digital assets.
DONALD J. TRUMP WILL BE THE FIRST SITTING US PRESIDENT TO HOLD MEMECOINS pic.twitter.com/ODlNXDaKIT
— Arkham (@arkham) January 10, 2025
Trump’s journey into the crypto world is notable. He had been a strong critic of Bitcoin and other cryptocurrencies, calling them scams. But that all changed in 2024 when he started publicly endorsing Bitcoin and speaking out for the right to own it. That’s a broader trend among politicians, who are increasingly recognizing the potential of cryptocurrencies and their growing popularity among voters.
Trump’s financial success in the digital sphere was also aided by his venture into non-fungible tokens (NFTs) on Ethereum. Trump reportedly made a good living from these endeavors, and he currently owns roughly 496.77 ETH, which is worth about $1.6 million.
Many people are eager to see how Trump’s administration will regulate cryptocurrencies now that he is back in office. A possible change toward a more advantageous regulatory climate for digital assets is hinted at by the nomination of important individuals like David Sacks as “Crypto Czar” and Paul Atkins as SEC chair. This could result in more precise rules for investors and businesses involved in the cryptocurrency industry.
Donald Trump. Image: Ronda Churchill/Reuters
The policies by Trump are already changing market dynamics as everybody is anxiously awaiting them. During this time when Bitcoin hit a record high of $108k, while meme coins surged, analysts still feel that Trump could make the year 2025 a major turning point in cryptocurrencies.
The rise of Trump-owned meme coins is indicative of a broader cultural shift among younger investors who are fed up with established financial institutions. This combination of the political influence of Trump and the speculative nature of meme coins puts a scenario under which political events could significantly affect cryptocurrency markets. Thus, while the investors go about this, they are not ignorant of the volatility that is usually associated with meme coins.
Featured image from Fortanix, chart from TradingView
Scammers stole millions of dollars in cryptocurrency from remote job seekers in an elaborate scheme. New York Attorney General Letitia James has filed a lawsuit to recover over $2 million that she said was stolen from New Yorkers and others nationwide.
Scammers used unsolicited text messages to lure victims with promises of flexible, well-paying remote work opportunities. They claimed the job involved reviewing products online to generate market data. However, victims were told to open cryptocurrency accounts and maintain balances matching the price of products they were reviewing.
While victims believed they would receive their investments plus commissions, the funds were instead transferred into the scammers’ crypto wallets. The fake product reviews took place on a fraudulent website created as part of the scheme.
The lawsuit details seven people who were scammed. One victim, a New Yorker, lost over $100,000 while another victim from Florida lost over $300,000. These cases show the significant financial and emotional impact on the victims.
James’ office, working with Queens District Attorney Melinda Katz and her cryptocurrency unit, traced the stolen funds to specific digital wallets. Over $2 million in cryptocurrency has been frozen, ensuring it can be returned to victims.
“Deceiving individuals seeking remote work is cruel and unacceptable,” said James. “We’re committed to holding scammers accountable and recovering stolen funds.”
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