Resubmitted to the U.S. Congress three years later, the bill wants to exempt small bitcoin transactions from taxes

The U.S. Congress has again introduced a bill calling for the exemption of capital gains tax on personal cryptocurrency transactions.

The Virtual Currency Tax Fairness Act of 2020, announced in Washington, D.C. on Thursday, was proposed by Congressman Suzan Delbene from Washington and David Schweikert from Arizona.

crypto

In 2014, the U.S. Internal Revenue Service (IRS) determined that Bitcoin and other cryptocurrencies constituted a form of property, and the bill addressed a problem that arose. In other words, large and small transactions will trigger taxable incidents, leaving taxpayers to bear capital gains taxes. Critics argue that such rules affect the performance of cryptocurrency payments due to the tax burden.

Existing tax laws have difficulty dealing with cryptocurrencies because they sometimes appear as investments, sometimes as commodities, and sometimes the same as other currencies. For the last type of transaction, the bill will simplify the work of cryptocurrency traders and users.

The goal of the new bill is to allow tax exemption if the calculation of transactions involving cryptocurrencies is less than $ 200.

If approved, the bill will cover all transactions after December 31, 2019.

The content and intent of the bill is similar to a bill submitted to Congress in 2017, and was co-sponsored by Schweikert and then MP Jared Polis. However, the bill at that time proposed a waiver of a minimum of $ 600 in transaction proceeds.

Cryptocurrency advocacy group Coin Center has been working on the popularity of cryptocurrencies in Congress, and the agency is also helping to secure minimal exemptions. The agency said on Thursday:

"This simple solution addresses an obvious issue with current tax treatment of cryptocurrencies and helps create a level playing field for this technology."

Legislation around cryptocurrencies and blockchain is becoming more sophisticated. But the unique pressures of the hearing-not to mention the pressure including the presidency-could be an obstacle to substantial progress on the proposed bill.

Nonetheless, the new bill-along with measures proposed in the past, such as the Forked Assets Act to provide taxpayers with asylum by lawmaker Tom Emmer-further demonstrates that there may be continued interest in tax legislation.

Taxing cryptocurrencies has proven to be a major obstacle in the United States. In December last year, eight members of Congress wrote to the IRS asking the IRS to clarify the rules for reporting income resulting from the use of hard forks or airdrops.

Last year, just before the April tax filing deadline, 21 representatives sent a similar letter to the IRS, also expressing dissatisfaction with the current tax transparency.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Is the 'big boss' of the cryptocurrency world, Binance, starting to decline?

LianGuaiBitpushNews Mary Liu As 2022 comes to a close, it seems that Zhao Changpeng, co-founder and CEO of Binance, ...

Opinion

Unveiling the FTX Empire's 'Second-in-Command' The Glorious and Falling Journey of Chinese Genius Programmer Gary Wang

What has Gary Wang gone through, from being a close friend of SBF to becoming the COO of FTX and a key witness?

Blockchain

Behind 106 market cases, we discovered the impact of the BTC spot market structure on price discovery

(Onion Note: "Price Discovery refers to the process by which buyers and sellers reach a transaction price for th...

Blockchain

A number of exchanges will openly call the FATF proposal at the G20 opening meeting

The G20 summit of the G20, which everyone is paying attention to, will be held on June 28 and 29, 2019 in Osaka, Japa...

Blockchain

OK Jumpstart and then the exchange "new hot" rules are too complicated for users to "do not understand"?

This afternoon, the digital asset exchange OKEx officially announced the sales rules of OK Jumpstart. The rule shows ...

Blockchain

Hong Kong Cryptocurrency New Policy's One-Year Anniversary A Year of Major Leaps and Key Milestone Review

Over the past year, Hong Kong has made great progress and shown strategic development in virtual asset policies. Sinc...