New proposal in us congress: tax exemption for small cryptocurrency transactions

According to The Block, a bill has been proposed in The us congress that would seek to exempt individuals from capital gains tax on cryptocurrency transactions.

The virtual currency tax equity act of 2020 will provide exemptions for spending on virtual currencies that qualify individuals for transactions. The proposed bill would exempt taxpayers from reporting as long as the proceeds involved are less than $200, usually only for large purchases or wild bull markets. An earlier version of the bill set that figure at $600. It would also add a new category to the existing irs exemption category -- gross income.

It follows news that a tax on cryptocurrencies is a controversial issue in the us. In December, eight members of congress sent a letter to the irs asking the tax agency to clarify reporting rules for income generated from hard forks or airdrops. Just before the tax filing deadline last April, 21 representatives sent a similar letter to the I.R.S., also unhappy with the current clarity.

Source:https://www.theblockcrypto.com/post/53281/new-congressional-bill-seeks-de-minimis-tax-exemption-for-smaller-crypto-transactions

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