New Bipartisan US Senate Bill Seeks to Exclude Small Crypto Transactions from Taxation
Republican Senator Pat Toomey of Pennsylvania and Democratic Senator Kyrsten Sinema of Arizona are proposing a new law that would exempt small personal crypto transactions from taxation.
Under the current system, people who use digital assets to pay for goods and services must pay capital gains taxes when the value of the coin increases.
Virtual Currency Tax Fairness Act Presented Tuesday by Toomey and Sinema Goals change that by introducing a de minimis exemption for day-to-day crypto transactions.
The bill will exclude personal crypto transactions with a value of less than $50 or with gains of less than $50 from liability for capital gains tax.
Read the proposal right,
“A bill to amend the Internal Revenue Code of 1986 to exclude from gross income de minimis gains from certain sales or exchanges of virtual currency, and for other purposes.”
To prevent abuse of the exemption, the bipartisan bill also includes an aggregation rule, which provides that all sales and trades that are part of the same transaction will be treated as one.
Toomey says the bill will remove a barrier that prevents wider adoption of crypto assets.
“While digital currencies have the potential to become a regular part of everyday American life, our current tax code stands in the way.
The Virtual Currency Tax Fairness Act will make it easier for Americans to use cryptocurrencies as everyday payment by exempting small personal transactions like buying a cup of coffee from taxes.
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