A new bipartizan bill has been introduced in the Senate that may modify the use of cryptocurrency for everyday purchases by making tax exemption for private crypto transactions below $50 also as once the capital gains are less than $50.
New ‘Virtual Currency Tax Fairness Act’
A new bipartisan bill, known as the “Virtual Currency Tax Fairness Act,” was introduced in Congress Tuesday by Senators Pat Toomey (R-PA) and Kyrsten Sinema (D-AZ).
According to the announcement by the U.S. Senate Committee on Banking, Housing, and urban Affairs, the bill aims to “simplify the use of digital assets for everyday purchases” by creating “tax exemption for small personal transactions.”
Senator Toomey commented, “While digital currencies have the potential to become a normal a part of Americans’ everyday lives, our current tax code stands within the approach.” He added:
The Virtual Currency Tax Fairness Act will allow Americans to use cryptocurrencies more easily as an everyday method of payment by exempting from taxes small personal transactions like buying a cup of coffee.
Under current law, whenever crypto is employed to purchase purchases of any quantity, a rateable event happens. a private would owe the interior Revenue Service (IRS) capital gains on the dealing if the crypto appreciated in price, albeit solely by a fraction of a penny.
The new legislation seeks to “amend the interior Revenue Code of 1986 to exclude from gross income Delaware minimis gains from sure sales or exchanges of virtual currency, and for other purposes,” the text of the bill reads.
The announcement continues:
The Virtual Currency Tax Fairness Act would simplify the use of digital assets for everyday transactions by creating a sensible de minimis exemption for gains of less than $50 on personal transactions and for personal transactions under $50.
Toomey and Sinema’s Virtual Currency Tax Fairness Act conjointly has bipartisan support within the House of Representatives. Reps. Suzan DelBene (D-WA) and David Schweikert (R-AZ) introduced a previous version of the legislation in February. That bill sought to exempt personal transactions created with cryptocurrency when the gains are $200 or less.
( Kevin Helms, Bitcoin.com, 2022 )