A new bill in the US wants to exempt certain crypto transactions from tax filings
Lawmakers are making another run at giving some crypto users a break on their gains
Congress has just received a bill that looks to exempt certain personal transactions that involve cryptocurrency. This bill is called The Virtual Currency Tax Fairness Act of 2020, and it targets specifically what is considered personal transactions, which means that users don’t need to include this transactions to the respective tax authorities.
The current situation revolving the IRS and digital currencies is complicated, as the agency can hold users responsible for paying taxes on gains earned, but based only on the price the exchange had at the time of the transaction. Representatives Suzan DelBene, David Schweikert, Darren Soto and Tom Emmer have sponsored the new bill in an effort to clear the air, taking a second shot at finding relief for crypto enthusiasts.
It’s understandable why the need for changing this process, but this new bill, or this reintroduced and improved bill, will allow users to abstain from reporting gains under $200, which is what could apply to major purchases, while the first bill sought a $600 threshold.
Like any new technology, the law system struggles to adapt in order to be prepared and have proper regulation, for this digital currency sector, it has been particularly complicated for the US authorities as they could be investments, commodities, and just a currency all at the same time. So, this bill wants to simplify these conditions for both the authorities and cryptocurrency users.