Cryptocurrency Double Tax Abolition Bill Re-introduced to US Congress

North Carolina congressman Ted Budd re-introduced the Virtual Value Tax Fix Act bill to the House Committee on Budget, which proposed removing cryptocurrency transactions from double taxation. The relevant document is available on the website of the US Congress

For example, Budd believes that the Internal Revenue Code (1986) needs to be amended to make digital currencies not considered property.

At the moment, the US Internal Revenue Service (IRS) considers bitcoin as such, and its transfer in exchange for other currencies or services is considered a sale of the asset, as is the case with real estate. This is taxed at 40%, which, according to Budd, inhibits the massive adoption of technology.

The bill proposes to abolish the double taxation of cryptocurrency transactions and their immediate accounting.

Recall that several bills related to cryptocurrencies are being considered by Congress. Back in the spring of this year, a document known as the Token Taxonomy Act was resubmitted , proposing amendments to the Securities Act (1933) and the Securities Trading Act (1934) to exclude tokens from the definition of securities.

In addition, the authors of this bill proposed exempting cryptocurrency transactions worth less than $ 600 from taxes.

At the moment, the industry is also awaiting a new cryptocurrency guide from the IRS, which recently began sending out letters to investors in form 6174-A asking them to report the income from cryptocurrency transactions.

Note that in July, prominent industry supporter Congressman Tom Emmer re-introduced the bill, whose task is to determine tax regulations in the context of forks and airdrops.

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The most sensational recent bill was the document Keep Big Tech Out Of Finance , in which lawmakers proposed to ban large technology companies from issuing their own financial digital assets.

This happened against the background of the announcement of the Libra project from Facebook, a hearing on which was held in Congress in mid-July.

Fear and Loathing on Capitol Hill: How Facebook Lived Libra Digital Currency Hearings

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