The current discussion on taxes in the United States Congress raises concern among investors of bitcoin (BTC) and other cryptocurrencies, who may have to pay more taxes based on their activity. Johnny Luna, an American lawyer and of Puerto Rican origin, spoke with . about taxes for cryptocurrencies in the US.
The conversation revolved around his experience as a professional associated with the Gordon Law Group firm, where he covers this area for clients with tax responsibilities in the United States.
The Infrastructure Law, and the proposals to apply taxes to unrealized profits, are two lines of action that could have implications for owners and traders of BTC and cryptocurrencies.
The lawyer Johnny Luna, specialized in paying taxes in cryptocurrencies. Source: gordonlawltd.com.
Attorney Johnny Luna indicated that the final scenario regarding these laws is uncertain regarding the payment of taxes by cryptocurrency owners, but noted that it is possible that Congress will hand over the design of these regulations to the Department of the Treasury, which could bring stricter and more controversial regulations.
Although some investors are reluctant to report their cryptocurrency activity to the Internal Revenue Service (IRS), Johnny Luna notes that, in his work, he is in charge of collecting information about his clients’ transactions, and analyzing it for presentation. in the most efficient and honest way before the IRS.
I can see everything, but I don’t know what the client did. He knows more about his transactions, what he did, and that’s a work mix. The IRS doesn’t expect you to be perfect, they expect you to do your best, and they know there are many gray areas of interpretation. We as lawyers take a more aggressive position in certain things that other people do not, but based on the laws, knowing that we can defend [a los clientes] before the IRS.
Johnny Luna, a cryptocurrency tax attorney.
Unrealized profit taxes: the end of capitalism?
Regarding the recent proposals to apply taxes to unrealized profits, these have been notably promoted by Nancy Pelosi, speaker of the House of Representatives, and Janet Yellen, secretary of the US Department of the Treasury, who seek to finance with this collection Joe Biden’s government social spending.
Luna points out that this type of tax seriously affects all citizens, and estimating it is technically complex.
The lawyer points out that the laws on the stock markets state that an asset cannot be bought again until 21 days after selling it, but the volatility of cryptocurrencies makes it unlikely to meet this parameter.
Luna states that, if a currency rises very quickly, and the next day it falls drastically, an investor would have paid taxes on unrealized gains, to lose these gains completely in a matter of minutes.
“Many people say that it is the end of capitalism,” he assures, due to how this tax affects all types of property, such as houses and cars that are revalued with respect to their purchase price.
Later in the interview, along the same lines of ideas, Luna pointed out that the more taxes go up, and the more laws exist, more stakeholders will take advantage of loopholes to make a profit.
In addition, due to the impact of these laws on small and medium businesses, he does not believe that they will get much popular approval, and this could translate into poor electoral results for those who promote or approve them.
Although the attorney represents taxpayers in the US, he also advocates lowering taxes as a method to encourage innovation and attract investment from the cryptocurrency industry, which would eventually increase the volume of taxes collected by the IRS.
Enjoy the full interview with attorney Johnny Luna on our YouTube channel.