Bill on double crypto tax cancellation resubmitted to US Congress

Posted 09 August, 2019

Ted Budd, Congressman from North Carolina, has again brought a bill Virtual Value Tax Fix Act to the Budget Committee of the House of Representatives. The bill suggests that crypto-related transactions should not be subject to double taxation.

According to the document released on the US Congress website, the congressman believes that the officials should amend the Internal Revenue Code of 1986 under which digital currencies will not be classified as property.

For reference, bitcoin is considered as property now, while its exchange into other currencies or services – sale of the asset, same as real estate one. As a result, such deals face 40% tax, which is said to hamper mass approval of the technology.

The current law involves double taxes on cryptocurrency transaction with immediate records.

For now, the US Congress has some crypto bills for determination. In particular, Token Taxonomy Act was re-submitted this spring. The Act suggested exclusion of tokens from securities classification via amendments to Securities Act of 1933 and Securities Exchange Act of 1934.

Moreover, the subject bill also suggests exemption from taxes crypto transactions up to $600.

The Internal Revenue Service is expected to unveil a new edition of the crypto guidance.

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