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Treasury and IRS Roll Out Quiet Tax Relief for Private Equity, Crypto and Foreign Real Estate

Critics call the guidance unlegislated tax cuts that risk eroding revenue.

Overview

  • The New York Times reported that under-the-radar proposed regulations and interim IRS guidance have eased tax burdens for private equity firms, crypto companies, multinational corporations and foreign real estate investors.
  • In August, the IRS proposed rolling back rules designed to stop multinationals from claiming duplicate losses across countries.
  • In September, interim guidance on the minimum corporate tax let companies disregard unrealized digital-asset gains and losses in calculating adjusted financial statement income.
  • Strategy Inc disclosed it no longer expects to be subject to the minimum tax, and Cheniere Energy said it is entitled to a $380 million refund under the September guidance.
  • A Treasury spokesperson defended the approach as pro-investment simplification, and reporting links the moves to President Trump’s broader tax agenda that the CBO has estimated would significantly reduce federal revenues.