The proposed 20% tax on unrealized gains put forward by the US Department of Treasury’s 2023 Revenue Proposal could potentially become a “penalty for being successful,” according to Shehan Chandrasekera, Head of Tax Strategy at crypto tax software specialist CoinTracker.
Voicing the concern shared by a significant part of the crypto industry, Chandrasekera decried the proposal as “ridiculous,” and explained that the levy introduces uncredited pre-payment credits which can offset the actual capital gains tax that gets triggered once a taxpayer disposes of the assets, and realizes their gains in the future.
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