New Tax Laws on Cryptocurrency
On August 9th, 2021, senators struck a deal with the Treasury Department on tax reporting requirements but there was a huge concern at the beginning of this year on how cryptocurrencies would be taxed. Many believed that it would be taxed as a viable currency and different from stocks and bonds, which are looked at as assets. But many were shocked when senators announced that it would be taxed as a capital asset, envisioning it to be an investment instead of a currency.
In other shocking news, $28 Billion is being sought out by the U.S congressmen for crypto infrastructure funding. This included new taxation requirements for those classified as crypto brokers. Any party that is “validating distributed ledger transactions” is considered a broker and will have to pay taxes on the profit that is made from said transactions. But the average investor in crypto is also going to face a similar type of tax compared to assets such as stocks or bonds.
If you bought $50 worth of Bitcoin and it appreciated to $500 and was then used to buy merchandise of any sort, such as clothing or technology products, you would still be responsible for paying tax on the $450 gain even though it was spent. As with most capital gains, the IRS doesn’t care if you spent the bitcoin or kept it, you are still responsible for paying tax on it.
Many view cryptocurrencies as investments, but RuufPay’s native Home Coin is being used as a real-world utility, being used as a rental payment method for landlords and tenants. By making transactions between the two more convenient and quick within seconds and making the digital currency more useful than just an asset you hold to gain profits. With advanced Blockchain technology, payments between tenants and their proprietors are flawless and convenient. Through RuufPay and the use of Home coin, landlords could stake their collected payments and make 19% APY which is out of the ordinary since regular rental payments haven’t provided anything like this, not even for centuries. You also have the ability to easily convert cryptocurrency to USD and other fiat currencies with the push of a button if desired using our trusted partners. If Ruufpay is used by property owners, it will attract young tenants that are tech-savvy and attracted by the idea. Revolutionizing the space of real estate and bridging the gap one block at a time.