MicroStrategy: Taxation on Unrealized Gains

user avatar

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

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

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.

Other news

Polymarket Reports on October 29 Security Incident

Polymarket reports on a security breach that occurred on October 29, 2023, involving a compromised monitoring script, leading to $39 million in refunds.

user avatarLuis Flores

KuCoin Stops Services for Russian and Belarusian Users

KuCoin has announced the discontinuation of all services for users in Russia and Belarus, effective immediately as of October 29, due to legal and regulatory requirements.

user avatarArif Mukhtar

FCA Confirms HTX Has Ceased Operations in the UK

The Financial Conduct Authority (FCA) has confirmed that HTX is no longer active in the UK following a settlement regarding financial promotions.

user avatarMaria Gutierrez

Strategy's Financial Overview Highlights Cash Management and Asset Valuation

Strategy's Financial Overview Highlights Cash Management and Asset Valuation

user avatarDavid Robinson

Strategy Reports Significant Bitcoin Holdings and Digital Asset Gains

Strategy reports 848,517 BTC holdings and $20.91 billion gains from digital assets.

user avatarAndrew Smith

Binance Announces Phased Withdrawal Restart

Binance has announced a phased approach to restarting withdrawals, having replenished 95% of affected assets.

user avatarJacob Williams

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.