- Crypto tax regime in the US: This change could directly apply to sales tax and not capital gains tax. Depending on the user’s jurisdiction and applicable laws, MetaMask will now reserve the right to withhold sales taxes when required.
- Capital gains taxes in the US: Crypto holders using MetaMask and complying with United States laws must file their capital gains tax separately. In the United States, cryptocurrencies are treated as property for tax purposes.
Crypto Tax Regime in The United States
Capital Gains Taxes in The United States
Considering MetaMask’s evolution, this could directly apply to sales tax and not capital gains tax. When token holders buy sell or trade crypto assets they will likely have to pay capital gains taxes if they reside within US jurisdictions; this amount will depend on how long they held onto said crypto asset(s).
Tax Obligations for Crypto Holders Using Metamask
Therefore every crypto purchase via MetaMaster would translate into an automatic withholding of any applicable sales taxes – separate from any potential capital gains taxation – which must also be filed separately by all holding US residency status under applicable law(s).