US Congress to analyse tax exoneration of Bitcoin transactions

Representatives of the government and the opposition of the United States presented before the lower house of the Congress of the Republic the draft Law on Tax Equity for Virtual Currencies, in which the exemption of tax obligations for Bitcoin transactions is proposed if the profits capital are associated with less than $200.

The purpose of the bill is to refine “the Internal Revenue Code of 1986 to eliminate these requirements when the observed capital gain does not exceed $200.” In other words, it is aimed particularly at minor transactions as a way to stimulate the use of the main cryptocurrency as a form of payment in the country.

Current law establishes that using Bitcoin as a form of payment implies a sale to the United States Internal Revenue Service (IRS). Therefore, any income obtained from the trading of cryptocurrencies must be declared “as taxable income, regardless of size,” or the purpose of the transaction.

Encouraging the use of Bitcoin

With the presentation of this new bill, it is intended to encourage the use of the main cryptocurrency as a means of exchange in the US economy. Suzan DelBene, co-author of the bill, considers that virtual currencies have undergone a great evolution in recent years and are increasingly used by people in their daily lives.

According to DelBene, “the antiquated regulations around virtual currencies do not take into account their potential use in our daily lives, (…).This bill with common sense reduces bureaucracy and opens the door to more innovations, growing ultimately our digital economy.”

David Schweikert, editor of the project, and representatives Darren Soto and Tom Emmer agree that the Virtual Currency Fiscal Equity Act is intended to “encourage the use of the main cryptocurrency as a means of exchange in the US economy.”

M. Rodríguez

Source: crypto274.com