Crypto Tax Deduction in Jeopardy Due to New Tax Law

The recent tax law changes by the GOP have put a significant tax break for digital assets in danger. This change affects companies that deal with cryptocurrencies like Bitcoin and Ethereum. The issue is about how these digital assets are classified under the tax code. If crypto is seen as intangible property, companies won't be able to get a deduction for income earned from selling these assets abroad. This is a big deal because many companies rely on this deduction to lower their tax bills.The problem is that the tax code doesn't clearly say what kind of property crypto is. This lack of clarity is causing confusion. Tax experts are now waiting for the IRS to provide some guidance on this matter. This situation shows how important it is for the tax code to keep up with new technologies. As more companies start using cryptocurrencies, it's crucial to have clear rules. Otherwise, companies might face unexpected tax bills.