Microstrategy, the largest bitcoin carrier company (BTC), has a stock of more than $ 47 billion, including $ 18 billion of unreasonable gains, after years of collecting money through debt and shares ’issues to buy BTC.
But the new Wall Street Journal (WSJ) a report Microstrategy says it may be required To pay federal income taxes on these paper gains.
Investment gains often are not subject to taxes until assets It is sold. However, the Congress recently created.The minimum alternative taxes for companies“Through the law to reduce inflation for the year 2022. This means that Microstrategy can pay taxes on unreasonable gains from its BTC property, and based on the financial statements of Microstrategy, the tax rate will be 15 %.
The accurate strategy can be exempt from paying taxes
On the other hand, the adoption of the internal revenue body of new regulatory rules may lead to an overwhelming acquittal Strategy Whoever pays such taxes. Companies such as Berkshire Hathaway are exempt from paying taxes on unreasonable gains such as regular shares since the Tax Authority has already included written exemptions in the currently proposed rules.
However, the Tax Authority has not yet been granted any exemptions for unreasonable gains for companies on the origins of cryptocurrencies such as Bitcoin. Given Trump Administration “Due to the company’s clear interest in encrypted currencies, the company’s BTC holder may be the first to obtain such an exemption.
The American Tax Authority is still developing the new minimal alternative bases of companies on companies. Tax analyst Robert Wilins has long stated in the Wall Street Journal that the US Tax Authority would likely control Microstrategy, which would not have happened under the Biden administration.
The company is currently facing a difficult situation and can sell some of its bitcoin currencies to raise funds if necessary to pay taxes on the unreasonable bitcoin profits.
Insights of American companies for minimal taxes
The United States has implemented the minimum alternative to corporate tax to reduce income companies for the generally accepted accounting principles (GAAP) while a few taxable revenues are offered or no tax revenues in their IRS files.
For example, Enron was famous in the 1990s for reporting the inflation of the generally accepted accounting principles of accounting, while avoiding federal income taxes. In the example of Microstrategy, the company may pay taxes on paper profits, which may represent a loss if the value of bitcoin decreases significantly.
Before this year, companies with encrypted currency assets did not include them in their financial reports that are generally accepted by the principles of accounting that are generally accepted in fair market evaluations. Instead, cryptocurrencies under accounting rules were classified as incremunicivated assets that can be reduced but not increased.
Therefore, the results of the principles of accounting generally accepted in Microsattiti did not contain Unrealized gains Of her possessions from Bitcoin. This year, the Financial Accounting Standards Council created new regulations that turned the previous rule.
The Business Intelligence Company will start displaying the actual value of its bitcoin currencies in its financial records this year, and the profits will reflect value changes. In a file on January 6, the company first unveiled numbers that measure the effects of accounting and tax changes.