MicroStrategy: Taxation on Unrealized Gains

by Giorgi Kostiuk

2 years ago

Michael Saylor's MicroStrategy, the largest corporate Bitcoin holder, may face federal income taxes due to new US regulations.

The Core Issue

According to the Inflation Reduction Act passed in 2022, the company is required to pay a 'corporate alternative minimum tax' at 15% of adjusted earnings. This could include MicroStrategy's unrealized gains despite them not selling Bitcoin for profit.

Potential Legislative Changes

However, the IRS might grant an exemption for Bitcoin under a potentially more crypto-friendly Trump administration.

History of MicroStrategy and Reports

As of early 2023, MicroStrategy's portfolio exceeded 450,000 BTC, valued over $48 billion. Previously, in August 2022, the company and Saylor were accused of evading taxes in Washington, D.C., for which they later agreed to pay $40 million.

Potential tax changes for MicroStrategy may set a significant precedent for other corporate crypto holders.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Tier I

Requires 25% Tier Progress to Claim

Meme Cache

Tier I

Requires 50% Tier Progress to Claim

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Tier I

Sector: #18291

25%

50%

75%

100%

Tier II

Survivors rescued:

0 / 600

Survivors

0/0

Transmit Signal

Broadcast this sector's coordinates to other rescuers.

Other news

BTCPay Servers 247 Release Addresses Security Vulnerabilities

The latest release of BTCPay Servers, version 247, includes critical security fixes to enhance security for businesses operating their own Bitcoin payment servers.

Rajesh Kumaran hour ago

Aave Freezes tBTC Supply and Borrowing Amid Threshold's Pause

Aave contributors announced a freeze on additional tBTC supply and borrowing in its Ethereum Core market following Threshold's temporary pause of the token's mint and redeem functions.

Miguel Rodriguez2 hours ago

BitMine Immersion Technologies Reports Significant ETH Holdings

BitMine Immersion Technologies disclosed its holdings of 6,060,506 ETH as of November 1, with a significant portion staked.

Luis Flores3 hours ago

CrowdStrike Introduces AI Agent Kill Switch to Enhance Corporate Security

CrowdStrike has introduced an AI agent kill switch to enhance security in corporate networks, allowing administrators to stop unauthorized AI activities.

Arif Mukhtar4 hours ago

TLDR Strategy Acquires Additional Bitcoin and Repurchases Preferred Shares

TLDR Strategy announced the acquisition of 811 Bitcoin for approximately $655 million and the repurchase of about $208.2 million of its STRC preferred shares.