Opinion of US Tax Attorney: How should Bitcoin investors report taxes if Trump wins the election?

Donald Trump elected as the 47th President of the United States, Bitcoin price surges, what impact will it have on cryptocurrency investors and their tax obligations? Yahoo Finance interviews tax attorney and certified public accountant Andrew Gordon for his insights, he believes it will depend on the direction of the U.S. government and Trump's future policies, and offers recommendations.

Trump elected as the 47th President of the United States, Bitcoin price skyrocketed. What impact will this have on cryptocurrency investors and their tax obligations? Yahoo Finance interviewed tax attorney and certified public accountant Andrew Gordon, who believes that it is necessary to observe the future policies of the U.S. government and Trump, and he provides recommendations.

The United States IRS defines Bitcoin as a type of Digital Asset, classified as Property, not Currency. Reporting digital assets is similar to reporting stocks, and investors need to proactively report them. The IRS recognizes digital assets as any assets recorded on a blockchain decentralized ledger, including cryptocurrencies, stablecoins, NFTs, and other on-chain assets, which are electronically stored, sold, held, transferred, or traded.

The taxable definition of digital assets is any asset recorded on a decentralized ledger blockchain and the value represented by any numerical value.

Gordon points out that investors only need to report taxes on the income generated when selling or trading cryptocurrencies. However, there are ways to minimize taxes, one of which is offsetting the gains from Bitcoin with losses from other cryptocurrency investments. He also recommends holding cryptocurrencies long-term because holding them for over a year allows investors to offset gains from losses, and they can report taxes at a lower price based on the price difference between the original purchase price and the later selling price.

As investors' income increases, tax rates will also increase. Adopting tax minimization strategies can reduce the amount of taxes paid and alleviate the burden.

In July of this year, Republican Senator Cynthia Lummis from Wyoming introduced the Bitcoin Act, advocating for the U.S. to reserve and hold Bitcoin and a secure network to maintain the financial balance of the U.S. and ensure the autonomy of Bitcoin investors. The bill is currently in the proposal stage, and after Trump takes office, how to save on taxes after investing in Bitcoin will depend on clearer definitions and regulations before investors can have a more definite direction for financial planning.