🇰🇷JUST IN: SOUTH KOREA OPPOSITION MOVES TO SCRAP 2027 CRYPTO TAX ENTIRELYSouth Korea's opposition party has introduced a bill to fully abolish the planned 22% crypto capital gains tax scheduled for 2027.The party argues that it creates an unfair disparity, given that stock gains currently face no income tax.The move reignites a long-running political battle over crypto taxation in one of the world's most active retail crypto markets. ...

Core Argument - The article discusses the proposal to adjust the capital gains tax basis for inflation, arguing that current taxation on capital gains does not account for inflation, leading to unfair taxation on nominal gains rather than real profits [1][4][8]. Taxation on Capital Gains - Gains on assets held for less than a year are taxed at ordinary income rates, which can reach up to 37% for incomes over $640,600 [1] - For assets held longer than a year, the maximum capital gains tax rate is 20%, with lower rates for incomes below certain thresholds [2]. Inflation and Taxation - Proponents argue that inflation distorts the real value of capital gains, suggesting that investors should not be taxed on gains that are merely inflationary [5][6]. - The proposed remedy involves adjusting the original basis of an asset for inflation, which could significantly reduce the taxable gain [8]. Economic Implications - Implementing inflation indexing could cost the federal budget significantly, with estimates of $169 billion over ten years for new assets and nearly $1 trillion if applied retrospectively [11]. - The article questions whether the wealthy need further tax breaks, especially given previous tax cuts estimated to cost $1.5 trillion over ten years [11][12]. Political Context - The proposal has faced historical resistance in Congress, with previous attempts failing to pass [14][19]. - The article highlights the ongoing efforts by Republican lawmakers to revive the proposal, despite its unpopularity and potential economic drawbacks [16][22]. Wealth Disparity - The article notes that capital gains are a significant source of income for the wealthiest households, while the median American household relies primarily on wages [17][18]. - The capital gains tax is described as a voluntary tax, as it is only incurred upon the sale of an asset, and can be avoided entirely by holding assets until death [18].

Zack Polanski is expected to argue for higher capital gains tax and for the Labour government to “tighten up” its existing levy on oil and gas companies https://t.co/JNU4C0aTVs ...

分组1 - Capital assets include personal items and investments such as stocks, bonds, and real estate, and selling them results in capital gains or losses [1] - Capital gains are classified as short-term (assets held for one year or less) or long-term (assets held for more than one year), affecting tax rates [2][30] - Long-term capital gains are taxed at rates of 0%, 15%, or 20% based on income, while short-term gains are taxed as ordinary income at rates ranging from 10% to 37% [3][30] 分组2 - Tax liability arises when there is a net capital gain, calculated by subtracting net short-term capital losses from net long-term capital gains [5] - The adjusted basis is crucial for determining gains or losses upon sale, which includes the purchase price plus any associated costs [6][7] - Accurate reporting of cost basis is essential to avoid overstating or understating tax liability [8] 分组3 - Tax-loss harvesting allows investors to sell assets at a loss to offset gains, but it requires careful adherence to regulations [25] - Consulting a tax professional can provide clarity on capital gains calculations and strategies to minimize tax liability [26][27] - The "step up in basis" rule applies to inherited assets, potentially reducing tax bills upon sale [28]

Core Insights - Republican lawmakers are advocating for a significant change in the calculation of capital gains when homeowners sell their properties, specifically proposing to index these gains to inflation [2][7] - The current capital gains exclusion allows homeowners to exclude up to $250,000 (or $500,000 for joint filers) from taxable income, which may lead to unexpected tax liabilities for some homeowners due to rising home prices [4][6] Group 1 - The proposal aims to reduce taxable gains for long-term homeowners, potentially encouraging more sales, especially among higher-income households [3][5] - Lawmakers argue that taxing nominal gains that reflect inflation can hinder housing mobility and distort real estate investment decisions [4][7] - The current tax structure can result in significant tax liabilities for homeowners, as illustrated by an example where a home sold for $400,000 after being purchased for $100,000 results in a $50,000 taxable gain after exclusions [6]

Core Insights - The article emphasizes that selling cryptocurrency is treated similarly to selling stocks for tax purposes, with long-term capital gains taxed at lower rates if held for over a year [1][6]. Tax Implications of Cryptocurrency - Individuals must remember that gains from cryptocurrency sales are taxable, akin to stock transactions, and they should be aware of the rules surrounding these taxes [2][7]. - Carry-forward losses from previous years can be utilized to offset gains, and individuals can offset net losses against ordinary income up to $3,000 [4][5]. - A new requirement mandates brokers and crypto platforms to report crypto sales on form 1099-DA, with cost basis reporting starting in tax year 2026 [9][10]. Importance of Cost Basis - Accurate tracking of cost basis is crucial to avoid overpaying taxes on capital gains, and TurboTax offers features to assist users in identifying missing cost basis information [10][12]. - Users can import a significant number of transactions into TurboTax, which simplifies the process of managing crypto and stock trades [13]. General Advice - Individuals who engaged in cryptocurrency trading should ensure they are aware of their tax obligations and the potential for gains, especially following a volatile trading year [6][14].

NEW: 🇺🇸 US Senator Cynthia Lummis says lawmakers are trying to best figure out "how you can use bitcoin as a means of exchange without paying capital gains tax" 👀 https://t.co/at8sX7QXdX ...

Core Viewpoint - Republican senators Ted Cruz and Tim Scott are advocating for a $200 billion tax cut that could be implemented without congressional approval, aiming to enhance the GOP's economic position ahead of the midterm elections [1][2]. Tax Proposal Details - The senators intend to send a letter to Treasury Secretary Scott Bessent, proposing inflation indexation to reduce the capital gains tax burden on Americans selling assets such as stocks, businesses, and homes [2]. - The proposal is framed as a potential solution to the housing market challenges, suggesting that indexing capital gains for inflation would encourage long-term homeowners to downsize and sell, thereby increasing the supply of family homes [3]. Financial Implications - The proposed change is estimated to cost around $200 billion, according to Cruz's office [3]. - The senators assert that the administration has the authority to implement this change without congressional approval, although a 1992 Justice Department opinion indicates that such a change may require congressional involvement [3]. Expert Opinions - Harvard professor Jason Furman criticized the proposal as "not good" tax policy, stating that it would need to trigger other adjustments based on inflation, particularly regarding interest deductions [5]. - Furman emphasized that interest deductions should only apply to real interest, excluding the inflation component [6].

Core Insights - Investors often overlook the impact of taxes on their investment returns, which can significantly erode portfolio gains [1][2] Group 1: Common Capital Gains Mistakes - Selling investments just before the 12-month mark results in higher ordinary income tax rates instead of lower long-term capital gains rates, leading to substantial tax differences [3][4] - Purchasing mutual funds right before year-end can lead to unexpected tax bills due to capital gain distributions, which are taxed even if the gains were realized in prior years [5] - Ignoring state taxes can increase the overall tax burden, as states may tax capital gains as ordinary income, adding to federal tax liabilities [6] Group 2: Additional Tax Considerations - The Net Investment Income Tax (NIIT) can impose an additional 3.8% tax on investment income for high earners, which should be considered when planning significant sales [7]

The Senate is expected to vote on a Democraticbacked War Powers Resolution Act later today that would halt the president's ongoing attack attack on Iran. Joining us right now is Senator Cynthia Lumis. She chairs the banking subcommittee on digital assets.And uh Senator, thank you for being with us today. Let's start first with the news of the day and what we are seeing in Iran and what you plan to vote later today in this resolution. Well, nice to see you, Becky.Um, I tell you, this war with Iran has had a ...