The cryptocurrency platform FTX announced its bankruptcy, which caused a major shock in the currency circle. It is estimated that about 500,000 people in Taiwan have suffered investment losses. Legislators are concerned about the public’s investment in cryptocurrency losses, whether property transaction losses can be listed; Finance Minister Su Jianrong said that if there is any declared income , according to the regulations, the loss deduction can be reported.
Treasury officials said the key was whether the damage was “realized”. In other words, the market value of cryptocurrencies declines. If the holder sells below the cost, realizes the loss, and meets the regulations, it can be reported.
FTX, an encrypted currency platform headquartered in the tax haven Bahamas, declared bankruptcy, which caused the price of native token FTT and other encrypted currencies to fall, which aroused great attention in the market.
On the 14th, at the Finance Committee of the Legislative Yuan, a legislator was concerned about the loss of people investing in cryptocurrencies and whether they can report property transaction losses when declaring income tax. Su Jianrong responded that for individuals, if they have declared income, they can report losses and deductions according to regulations.
The official of the Ministry of Finance further explained that the income tax adopts the “cash system”, the key lies in whether the loss has been “realized”. If the public admits that the loss has been realized, once the transaction loss is determined to be a loss of overseas property transactions, it can be paid when declaring the minimum tax burden. , offsetting with the current year’s overseas property transaction income.
However, people in the currency circle said that the current situation of FTX is that it stops trading and cannot deposit or withdraw funds, which is like assets stuck in the exchange. This is a relatively big problem at present.
People in the currency circle explained that cryptocurrencies have “cold wallets”, which are physical hardware facilities, or “hot wallets”, which are virtual wallets on the chain. The assets themselves are still in the hands of the owners, not stuck in exchanges. The situation that will be encountered may be that the value of the cryptocurrency held on hand will drop due to market volatility.