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Cyber Bitcoin
Edited by qqqpeter at 2020-1-18 17:07

Blocktempo.com reported that on 16 Jan, four Democrats from the Democratic Party introduced the "‘Virtual Currency Tax Fairness Act of 2020", which aims to amend the Internal Revenue Service (IRS) tax law to allow "transactions under $ 200" Revenue is exempt from taxes. Coin Center, which lobbyed to promote the bill, believes that this will reduce the tax burden on cryptocurrency users and increase competitiveness in the US cryptocurrency field.

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Image from Bitcoinexchangeguide.com

The U.S. Congress is already functioning in 2020. The "Virtual Currency Tax Fairness Act of 2020" was introduced with the purpose of exempting the taxation of daily cryptocurrency transactions.

The promoter of this bill is Neeraj Agrawal, director of communications at Coin Center. He lobbied Democrats Rep. David Schweikert, Suzan Delbene, Darren Soto, Tom Emmer, and These lawmakers moved in the House of Representatives.

Amendments to the bill ’s IRS tax law will exempt less than $ 200 of Realized gain tax, also known as the “de minimis threshold”

Causes of IRS

According to 2014 guidelines issued by the IRS, cryptocurrencies such as Bitcoin should be considered as taxable commodities. Under current federal law, Canadian currency traders must report marginal capital gains which place a burden on the average small transaction user.

The biggest practical effect of this new bill is to simplify the tax burden of cryptocurrency users on a daily basis. The introduction of this bill will solve a problem that large and small transactions will raise tax issues, which makes it difficult for cryptocurrencies to be used as a daily payment method.

The new bill states,

Personal income should not be included in personal transactions as a result of changes in virtual currency (this usage has been defined in section 11 988 (e)). The above law does not apply to transactions in excess of $ 200.

If the bill is passed, exempted transactions will be covered from January 1.

As one of the drivers behind this bill, Coin Center stated,

This bill simply solves the current problem of taxation of cryptocurrencies and helps improve the country's competitiveness in this field. Extending this exemption to general cryptocurrencies will make it easier for users to make daily transactions, such as sending small transactions to each other or sending small cryptocurrencies to DApps without having to perform fairly complex capital gain calculations each time.

In fact, David Schweikert proposed similar bills in the past. They were co-sponsored with Jared Polis. At that time, the transaction was set at less than $ 600. Schweikert's bill was never submitted to the House of Representatives for review, and it ended in the House.
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