IRS Comes After Crypto Profits: CNBC After Hours
Pippa Stevens of CNBC.com brings you today’s top business news headlines. On today’s show, Eamon Javers breaks down a recent court ruling allowing the IRS to access the identities of taxpayers who use cryptocurrencies. In addition, Robert Frank explains what he calls the “triple tax threat” to real estate investors as part of President Biden’s policy proposals.
Here’s what else we read:
Eamon Javers overturns a recent court ruling allowing the IRS to access the identity of taxpayers who use cryptocurrencies.
Wealthy families could face combined tax rates of up to 61% on inherited wealth under President Joe Biden’s tax plan, according to recent analysis and tax accountants.
As part of his U.S. plan for families, Biden is proposing to nearly double the top capital gains tax rate and eliminate a tax advantage on appreciated assets known as a “step- up in base ”. The combination of the inheritance tax, the new higher rate of capital gains and the repeal of the base increase could raise the total effective marginal rates up to 61%, according to an analysis by the Tax Foundation.
The rate is said to be the highest of its kind in nearly a century, according to the Tax Policy Research Group.
Peloton sales soar 141% as delivery pressures ease; no word on the financial success of the recall
Peloton on Thursday reported third-quarter sales growth of 141%, saying recent investments in its supply chain have helped it improve deliveries.
The company said average wait times for its bicycle have now returned to pre-pandemic levels.
However, the company’s shares fell almost 5% as it did not provide a financial outlook.
Peloton faces the fallout from a recall of its conveyor belts. In a earnings conference call, management said the planned launch of the company’s cheaper treadmill in the United States will be postponed, until new safety features for the machines are approved.
Square Receives Bitcoin Boost With Revenue Up 266%
Square reported $ 3.5 billion in bitcoin revenue, up eleven times a year. But bitcoin’s gross profit was only $ 75 million, or about 2% of revenue.
Gross profit rose 79% year-over-year to $ 964 million in the quarter ended March 31, according to a statement.
Gross profit for the Cash app was $ 495 million, up 171% year-over-year. In March, Square’s peer-to-peer competitor to Venmo began offering customers the ability to instantly send bitcoin for free.