New bill looks for a very small tax exemption for smaller crypto transactions

Once again, the push to create a de minimis tax exemption for day-to-day cryptocurrency purchases has begun in the U.S. Congress.

On Thursday, Washington, D.C.-based crypto advocacy group Coin Center, published the Virtual Currency Tax Fairness Act of 2020. More specifically, the bill was introduced by Congresswoman Suzan Delbene of Washington and Congressman David Schweikert of Arizona.

In 2014, the IRS determined that bitcoin and other cryptocurrencies constitute a form of property, that transactions both big and small trigger a taxable event that leaves payers on the hook for capital gains. The goal of the new bill is to exempt transactions involving cryptocurrencies if the calculated gain in question is below $200. As the bill states:

"Gross income of an individual shall not include gain, by reason of changes in exchange rates, from the disposition of virtual currency in a personal transaction (as such term is defined in section 11 988(e)). The preceding sentence shall not apply if the gain which would otherwise be recognized on the transaction exceeds $200."

If approved, the bill would cover transactions taking place after December 31, 2019.

This article is not intended to be financial advice. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Crypto Block does not provide investment, tax, legal, or accounting advice.

As always, do your due diligence before investing, and never invest more than you can afford to lose.

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