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.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
