US lawmakers propose making “realized gains” from crypto transactions under $200 tax free

posted 6 months ago
US lawmakers are pushing to exempt gains from small cryptocurrency transactions from being taxed. “The Virtual Currency Tax Fairness Act of 2020” would amend IRS tax code to exempt realized gains under $200. From a practical standpoint the bill could simplify the tax burdens of day-to-day crypto users.

This bill would provide relief for low-level use cases, like transactions, while enforcing it against more substantial users, like investors. The IRS currently treats Bitcoin and other cryptos as “convertible virtual currencies” that are taxable commodities.
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