Cryptocurrencies Demand Fair Taxation: US Legislators Propose Supportive Legislation
The US legislators are recently in a mood to provide fair taxation policies for cryptocurrencies. Many people do not know, but every time they spend digital currency in the USA, they are creating a taxable event. Despite cryptocurrencies being suitable payment methods, the country's regulators don't treat wholly virtual representations of value as either foreign currency or any legal tender.
IRS Sees Cryptocurrencies As AssetsThe Commodity Futures Trading Commission (CFTC) treats Bitcoin and other cryptocurrencies as commodities. The country's tax authority, the Internal Revenue Service (IRS), views cryptocurrencies as intangible property or assets. Yet, people can use cryptocurrencies just like dollar and other fiat currencies. This is an issue because when an individual exchanges digital currency for either another currency or goods, the IRS takes it as a taxable event. Cryptocurrencies are extremely unpredictable as they are still in their infancy. This year alone, the price of Bitcoin improved by more than 20 per cent. No matter how unimportant, current legislation requires a record of all such trading of property. This is a nightmare for those trying to use bitcoin wallet for day to day spending.
Efforts From Coin Center’s TeamA group of US lawmakers, which was working with the Washington DC-based research group Coin Center seemed to be excited when this issue got addressed. Last week, Suzan Delbene, a representative, presented a proposal to improve the existing legislation. The bill, identified as the Virtual Currency Tax Fairness Act, which was supported by representatives like Soto, Emmer and Schweikert. If passed, the bill would see the individual spending of cryptocurrencies free from taxation. If the transaction had resulted in a profit of less than $200, it wouldn't require reporting. Recently, Coin Center gave a statement regarding the bill, that Washington-based advocacy and research group has been working with representatives Schweikert and Delbene to reintroduce the bill in Congress. Earlier in 2017, Coin Center collaborated with Jared Polis and David Schweikert on a similar exception.
About The Author
Shailesh PanwarShailesh is an ardent follower of the crypto world and keenly watches every development taking place in the cryptocurrency space. He loves to voice his opinions through well-curated blogs and articles, which throw light on different facets of the crypto industry.