Virtual Currency Tax Fairness Act of 2020 Introduced in U.S. House

 

 

 

 

 

U.S. Representative Suzan DelBene (D-WA) introduced the Virtual Currency Tax Fairness Act of 2020 in the House of Representatives today, digital asset advocacy group Coin Center reports. The bill is a revised version of a 2017 proposal and would create a de minimis tax exemption for small cryptocurrency transactions.

Under existing IRS tax policy that treats digital assets as property, digital currency transactions trigger taxable events that require users to track any appreciation or depreciation of the currency’s value for purposes of capital gain taxation. The proposed legislation would exempt those transactions from taxation when the gains are less than $200. The 2017 proposal was more generous, with a higher limit of $600 in gains.

According to the text of the bill:

"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."

The bill’s sponsors reportedly include DelBane, as well as Representatives Schweikert, Emmer, and Soto. If passed, its provisions would apply to all transactions made after December 31, 2019.

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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