President Joe Biden Calls Off Tax Loopholes That Supports Wealthy Investors

• U.S. President wants to cut the tax loopholes and wash sales.
• Over the decade from 2024, $23.52B would be the estimation.

According to the Forbes report, Kelly Phillips Erb 2 wrote that the President of the U.S., Joe Biden is closing the tax loopholes worth $18B. These loopholes support wealthy cryptocurrency investors. Notably, the $18B could be the harvest tax losses along with the wash sales.

Biden’s fiscal year 2023 budget added a proposal in which the closing of loopholes was properly aimed to support digital assets. Moreover, the proposal included:

“The same loss recognition rules should apply to digital assets held as investments or for trading as would apply for stocks and securities.” 

Wash Sales Revenue Estimation 

Concerning tax purposes, the wash sale is been happening. The wash sale is something in which investors trade securities or stock during loss and then purchase substantially identical securities or stocks sooner than they sold. Also, the Internal Revenue Service (IRS) of the U.S. is involved in determining the trading assets as ‘substantially identical’.

Meanwhile, these wash sales don’t preferably relate to digital assets but to virtual currencies reports IRS. Crypto investors can sell and buy digital assets like cryptocurrencies during their lows and highs respectively as per their preference. 

As per the Biden administration estimation, $1.24B would be the change effect in the year 2023 and $8.97B for the upcoming five years. If this prolongs, then the abrupt estimation would be $23.52B during the next decade till 2033.