Legislation Proposed in U.S. Would End Capital Gains Tax on Bitcoin Purchases Un

[webwakko]

A new bill introduced with bipartisan support intends to create a more fair tax structure for cryptocurrency users. Titled "The CryptoCurrency Tax Fairness Act,” the bill is seeking to create a new minimum purchase point at which Bitcoin can be used as a currency without payment of capital gains taxes.

The bill, introduced by Rep. Jared Polis (D-Co) and Rep. David Schweikert (R-Az), will provide a relief point for holders of digital currencies, and would create legislation similar to that already in place for use of foreign currencies. The bill does stipulate that a series of similar transactions will be considered one transaction, but no guidance is given on the level of similarity. The bill states:

“For purposes of this subsection, all sales or exchanges which are part of the same transaction (or a series of related transactions) shall be treated as one sale or exchange.”

The bill comes at a time when there is widespread concern among cryptocurrency holders about federal tax policies. The recent news regarding the dialogue between Coinbase and the IRS is one example of the growing mistrust of cryptocurrency holders among regulators.


Source : cointelegraph

[Hydrogen]

I think in some US states, if a person earns less than $600 a year, they aren't required to pay income taxes. This could be an extension of that where low sums of bitcoin exchanged for fiat would not be subject to taxation.

The bill being introduced by senators from arizona and colarado could imply arizonans could have a use for this which might correlate with arizona being a state ranked with a low average cost of living within the USA. Colorado having legalized marijuana could be a motive for this push as well with their end goal possibly being weed purchasable via bitcoin/crypto. The cannabis industry is becoming a big tax revenue earner for states which makes sense for them to expand options enabling purchase of it.

Still waiting for an update on senate bill 1241 which will have an effect on bitcoin & crypto if it is passed.

[davis196]

I think in some US states, if a person earns less than $600 a year, they aren't required to pay income taxes. This could be an extension of that where low sums of bitcoin exchanged for fiat would not be subject to taxation.

The bill being introduced by senators from arizona and colarado could imply arizonans could have a use for this which might correlate with arizona being a state ranked with a low average cost of living within the USA. Colorado having legalized marijuana could be a motive for this push as well with their end goal possibly being weed purchasable via bitcoin/crypto. The cannabis industry is becoming a big tax revenue earner for states which makes sense for them to expand options enabling purchase of it.

Still waiting for an update on senate bill 1241 which will have an effect on bitcoin & crypto if it is passed.

"If a person earns less than $600 a year..."Really?Can anyone live one year in the USA with such a low income?Anyway,the US government will finally accept cryptocurrencies as  normal currencies and this is the only good news here.
People buying marijuana with cryptocurrencies-dude,this is really progressive.

[olushakes]

I had maintained before that the earlier governments realise they cannot continue to ignore crypto currencies the better. Although, the bill might not eventually pass because of the perception and the argument against crypto currencies but it will set a path for other bills to follow and eventually it will come into fruition.

[webwakko]

Just a way to be sure they can get an hold on those crypto's
Wonder if popularity / profit will remain or drop as soon as most of the crypto's have been legalised

[alyssa85]

I had maintained before that the earlier governments realise they cannot continue to ignore crypto currencies the better. Although, the bill might not eventually pass because of the perception and the argument against crypto currencies but it will set a path for other bills to follow and eventually it will come into fruition.

The Americans are quite positive towards bitcoin. The FBI testified to Congress that it makes it easier to track crime thanks to the blockchain (easier than cash). And Silicon Valley has piled into bitcoin in a big way. It's legal already, but they'll make it easier to use.

It's only the authoritarian states (Russia, China) who fear bitcoin.

[webwakko]

In other words.. the ones that want to keep their money transfers hidden from the public
Don't get me wrong, the legal aspect is a good thing.. this way the crypto world will be less attractive for those who want to use it for illegal activities...