Crypto: Tax-free crypto payments? Sinema and Toomey propose Senate bill covering transactions under $50.

by | Aug 1, 2022 | Stock Market

A bipartisan bill proposed by members of the Senate would make cryptocurrency transactions valued at less than $50 tax-exempt. The Virtual Currency Tax Fairness Act of 2022, proposed by Pennsylvania Republican Pat Toomey and Arizona Democrat Kyrsten Sinema, has a stated goal to “simplify the use of digital assets for everyday purchases,” according to the press release associated with the bill. See also: Is the crypto bear market over? Here’s what to watch.

“While digital currencies have the potential to become an ordinary part of Americans’ everyday lives, our current tax code stands in the way,” Toomey said. “The Virtual Currency Tax Fairness Act will allow Americans to use cryptocurrencies more easily as an everyday method of payment by exempting from taxes small personal transactions like buying a cup of coffee.” Said Sinema: “We’re protecting Arizonans from surprise taxes on everyday digital payments, so as use of digital currencies increases, Arizonans can keep more of their own money in their pockets and continue to thrive.” See: Nancy Pelosi’s husband sells $4 million worth of Nvidia stock at a major loss According to the United States Senate Committee on Banking, Housing, and Urban Affairs, when a crypto transaction occurs, it can be a taxable event if the digital asset appreciated in value due to capital-gains-tax rules. The bill would create a tax exemption for all transactions under the amount of $50, as well as any gains less than $50 on personal transactions. The new bill aims to “amend the Internal Revenue Code of 1986 to exclude from gross income de minimis gains from certain sales or exchanges of virtual currency, and for other purposes,” the text of the bill reads. Some crypto and blockchain organi …

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