Bitcoin Price Surges Amid Pro-Digital Asset Policies and Upcoming Trump Administration

Investors have taken a bullish stance on the incoming Donald Trump administration’s pro-digital asset policies, causing the price of Bitcoin to soar since his presidential victory earlier this month. The cryptocurrency has hit multiple milestones on its way to $100,000, with its price surpassing $98,800 to touch a new record on November 21.

Bitball Flag Football Showdown: A Milestone for Bitcoin and Sports

In a groundbreaking development for the UAE’s sporting scene, the Bitball Flag Football showdown will feature some of the biggest names in American football, with players being rewarded in Bitcoin. The event is organized through the International Federation of American Football’s 75 national member federations and will be part of the official lineup of side events at this year’s Bitcoin MENA 2024.

“The flag football match at our Bitcoin event is no accident—it embodies the collaboration and resilience of the Bitcoin community. Russell Okung’s push to empower athletes with Bitcoin is a forward-thinking vision that moves us more into mainstream consciousness.”

George Mekhail, Vice President of Operations at BTC Inc., commented on the topic. The star-studded lineup includes over 22 football legends, such as Antonio Brown, Le’Veon Bell, and Johnson Bademosi.

Digital Asset Taxation: What You Need to Know

The United Arab Emirates has no income tax and has recently abolished value-added taxes on digital asset transactions. However, digital asset owners in the US are subject to worldwide taxation on their digital assets, which are treated as property and are subject to income tax or capital gains taxation.

The IRS provides guidelines on when digital assets count as income rather than a capital gain. Some examples include:

  • Getting paid in digital assets
  • Mining digital assets (on a hobby level)
  • Receiving an airdrop
  • Receiving new digital assets from a hard fork
  • Staking rewards
  • Referral bonuses
  • Earning interest through lending protocols
  • Earning new liquidity pool tokens, governance, or reward tokens on DeFi protocols
  • Learn to earn rewards
  • Watch to earn rewards
  • Browse to earn rewards
  • GameFi rewards

Digital Asset Tax Breaks

American digital asset investors can benefit from a few tax-free allowances that can help them pay a little less tax:

  • Gifting digital assets under $18,000
  • Capital gains tax-free allowance
  • Long-term capital gains tax rate

How to Report Digital Assets on Tax Returns

Digital asset owners file digital asset taxes with their annual tax returns by answering the IRS’s digital asset transactions question. The question appears at the top of Forms 1040, Individual Income Tax Return; 1040-SR, US Tax Return for Seniors; and 1040-NR, US Nonresident Alien Income Tax Return.

The IRS asks this question with variations for corporations, partnerships, estates, and trusts:

“At any time during the year, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?” Yes or No?

Digital Asset Tax Disclosure Deadline

The US tax year is from January 1 to December 31. Digital asset tax deadlines match traditional assets: April 15 for most individuals.

If you’re looking to stay up-to-date on the latest news and developments in the world of cryptocurrency, be sure to check out more articles on Global Crypto News.

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