Legislation Introduced to Change Tax Rules for Cryptocurrency Purchases
A group of lawmakers recently introduced bipartisan legislation to create a framework for taxing purchases made with cryptocurrency.
The legislation, called the Virtual Currency Tax Fairness Act, was introduced by Rep. Suzan DelBene, D-Washington, and Rep. David Schweikert, R-Arizona, and is cosponsored by Rep. Darren Soto, D-Florida, and Rep. Tom Emmer, R-Minnesota. The legislation would exempt personal transactions made with virtual currency when the gains are $200 or less.
Currently, any gains from virtual currency must be reported as taxable income regardless of the size or purpose of the transaction, and individuals must calculate and report any changes in the currency’s value against the U.S. dollar from the time they purchased the currency until it is used in a transaction. The lawmakers argue that these requirements make the everyday use of virtual currency more difficult and that the legislation would enable the Tax Code to evolve with the use of virtual currency.