New US bill proposes tax redemption for small crypto transactions
|- As the IRS defines cryptocurrencies as a form of private ownership, crypto transactions are currently subject to income tax.
- The bill proposes that cryptocurrency transactions worth less than $200 should be excluded from the taxable base.
The US Congress has introduced a bill that proposes the exemption of tax from crypto transactions worth less than $200. The bill titled "The Virtual Currency Tax Fairness Act of 2020" was created by Congressmen of Washington and Arizona, Suzan Delbene and David Schweikert.
Currently, crypto transactions are subject to income tax as cryptocurrencies are defined as a form of private ownership by the IRS. According to Delbene and Schweikert, this reduces the use of digital currencies for payments.
The draft law notes: Cryptocurrency transactions due to changes in exchange rates should not be included in an individual’s income. The previous sentence does not apply if the profit exceeds $200.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.