Members of the US House of Representatives recently unveiled a bill to amend the Digital Currency Tax Act. Under the new plan, income from a digital currency transaction will not be taxed if it does not exceed $ 200.
According to Bitcoin Magazine, according to a bill submitted to the US House of Representatives on Thursday, those transactions with bitcoin and digital currencies that earn $ 200 or less are tax-exempt. The bill aims to make it easier for US traders to use digital currencies as a means of payment. Currently, American investors must report their profits from the sale of their digital currencies to the government and pay taxes on them.
Susan DelBene, one of the authors of the bill, said in a statement:
Older American laws and regulations do not allow the use of digital currencies in people’s daily lives. Instead, most of these assets are treated as ETFs. However, digital currencies have developed rapidly over the last few years and there are more opportunities to use them in everyday life. The bill removes additional and costly regulations, paves the way for more innovation and ultimately boosts America’s digital economy.
David Schweikert, in collaboration with Darren Soto and Tom Emery, all members of the US House of Representatives, wrote the law, entitled The Virtual Currency Tax Fairness Act. Presented in Parliament.
Schweikert said in a statement:
Digital currencies are changing the way we live our daily lives. That is why the United States must recognize them and treat them fairly in its tax system. This law is an important step for the United States and could pave the way for the growth of the digital economy.
When an American uses bitcoin to buy a product or pay for a service, he or she actually sells some of his or her assets in a way that benefits the U.S. Internal Revenue Service. If the person earns his spent bitcoins at a lower price in dollars than at the time of payment, the difference in price is considered a capital gain. In this case, he must report his transaction and pay the tax.
With the bill, lawmakers are seeking to amend the 1986 U.S. Tax Code, which will exclude taxes if the profits from a digital currency transaction do not exceed $ 200. Therefore, the law aims to encourage traders to use digital currencies as a means of payment or at least to facilitate such a move by focusing on smaller transactions.
The publication New US Law: Transactions with digital currency with less than $ 200 in revenue are not taxed first appeared in digital currency.