In the US, the Democratic wing of the House of Representatives and the Senate is reportedly planning to introduce a new cryptocurrency rule to its trillion-dollar spending plan.
According to the news of Politico, Richard Neal, who is the head of the committee that oversees all financial legislation in the House of Representatives, wants to introduce a series of measures to finance the 3.5 trillion dollars expenditure package. These include new limits on large individual retirement accounts, additional restrictions on the support companies receive for high-wage employees, and new wash sale rules for cryptocurrency holders, where the seller is also the buyer.
The application aims to close a loophole that some crypto investors commonly use to defer capital gains taxes.
Under current rules, a taxpayer is tax deductible when he sells his stock at a loss. In order to make a claim in this regard, they must not buy shares or make an equivalent investment within 30 days. Otherwise, the transaction is considered a ‘wash sale’ and no tax deduction is possible for the loss. Now, cryptocurrencies are also required to be included in this rule.