Legislation Proposed in U.S. Would End Capital Gains Tax on Bitcoin Purchases Under $600
A new proposed bill in US Congress 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.
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.