MicroStrategy, led by Michael Saylor, may have to pay federal income taxes on its unrealized Bitcoin gains, reportedly exceeding $19.3 billion. This issue arises from the Inflation Reduction Act passed in 2022, which introduced a 15% corporate alternative minimum tax that could apply to the company. Although MicroStrategy has not sold any Bitcoin to realize these gains, the IRS might consider exemptions for Bitcoin under future regulations. The report also follows recent legal troubles faced by Saylor, which included a tax fraud lawsuit settlement regarding unpaid income taxes in Washington, D.C., spanning over a decade. Currently, MicroStrategy holds 450,000 BTC valued over $48 billion, having made their purchases at prices below $96,000 each. The situation reflects ongoing debates about taxation for cryptocurrency assets, particularly in the wake of changing regulatory environments under different presidential administrations.

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