Will Michael Saylor’s MicroStrategy Incur Tax Liabilities On Unrealized Bitcoin Gains? X Users Call The Claim ‘False,’ But Here’s What You Need To Know

MicroStrategy Inc. (NASDAQ:MSTR) reportedly may be liable for taxes on its unrealized Bitcoin (CRYPTO: BTC) gains, despite having made no sales.

What Happened: The Inflation Reduction Act of 2022, which introduced a “corporate alternative minimum tax,” could result in the so-called Bitcoin holdings company being subject to a 15% tax rate on its unrealized gains, reported The Wall Street Journal on Friday.

MicroStrategy, along with Coinbase (NASDAQ:COIN), another leading publicly listed cryptocurrency-linked firm, have pushed back against the regulation. In a joint letter from earlier this month, both companies appealed to the U.S. Treasury and the Internal Revenue Service to amend the rule to exclude unrealized cryptocurrency gains from the adjusted financial statement income, or the AFSI.

See Also: Elon Musk’s DOGE Department Reportedly Eyes Blockchain To Slash Federal Spending—Justin Sun Says Tron A Good Option

Interestingly, the report kicked up a storm on social media platform …

Full story available on Benzinga.com