Founder of IOG and the Cardano blockchain, Charles Hoskinson, has taken to Twitter to share his thoughts on the current US system of taxing crypto and posted a meme that mentions US Internal Revenue Service, crypto project CumRocket and “NFTittities”, as well as a potential rugpull that results in the loss of 90 percent of invested funds.
Tax deduction CumRocket profit gains invested in NFTitties
The meme contains a letter to the IRS from a tax payer who explains losing 90 percent of their crypto funds after earning 6,900 percent on staking $7,000 worth of CumRocket (a cryptocurrency project ranked 863 on the CoinMarketCap list), then investing the earnings in NFTitties (an NFT project that depicts women’s breasts) and then losing almost all of it after the devs made a rugpull, taking away their investors’ funds.
The question asked by the author of the letter in the meme is whether the IRS does mind deducting the gas fees for the minting and the balance from the tax on short term capital gains.
Gentlemen, this is where we are at pic.twitter.com/Huyu63uMmr— Charles Hoskinson (@IOHK_Charles) January 2, 2022
At the moment, according to a definition by the IRS, cryptocurrency is a taxable property. Investors are taxed on the difference between the price they buy and sell at. For crypto held less than one year, investors have to pay from 10 percent to 37 percent by regular marginal tax rates.
Hoskinson slams the crypto amendment in August 2021
In summer 2021, Hoskinson was one of the crypto industry leaders who was strongly against the tough crypto taxing initiative that a group of US senators attempted to pass. The goal was to collect $1 trillion, including more than $25 billion that the Senate was hoping to collect from crypto investors and traders.
The one trillion USD infrastructure bill was planned to be used to realize construction projects all over the United States.
John Lennon’s younger son Sean, known for his pro-crypto stance, supported Hoskinson in a series of tweets. Sean Ono Lennon back then tweeted that this bill would cripple progress in the crypto industry”.