Suzan DelBene, a member of the Washington House of Representatives, has proposed a bill that would let people who use crypto not pay taxes on transactions of less than $200.
In a draft of the Virtual Currency Tax Fairness Act of 2022, Washington Representative Suzan DelBene wants to change the Internal Revenue Code of 1986 so that some gains from certain personal transactions of virtual currency aren’t taxed, the Washington Times says.
People who live in the United States might not have to pay taxes on money they make from crypto transactions worth more than $200 if this bill is signed into law.
DeleBene: „Old-fashioned rules about virtual currency don’t take into account how we might use it in our daily lives, instead treating it more like a stock or ETF.“
„Virtual currency has changed a lot in the last few years. There are more ways to use it in our daily lives now, too.“
The U.S. needs to stay on top of these changes and make sure that our tax code changes with how we use virtual currency.
Congress has been given different versions of the bill on two other occasions, but neither one was passed by Congress.
In 2017, Representative David Schweiker proposed a bill that would let crypto transactions under $600 be exempt from taxes. He also co-wrote the current version with DelBene.
Under the same name, the bill was reintroduced in 2020 by the two lawmakers. They changed the amount of money that could be spent to $200.
Soto and Emmer, two lawmakers who support crypto, backed both the 2020 bill and this most recent one.
„As more people use cryptocurrencies to make everyday transactions, we need to update their tax treatment,“ said Emmer in a statement to Cointelegraph.
Bill: „This common-sense bill will finally let people use their digital wallets the same way they use cash.“
With tax season coming up in the United States, many crypto users have to report gains on their crypto holdings.
It’s not that residents don’t have to pay capital gains taxes if they hold on to their tokens, but only if they sell, exchange, or move their tokens around.
Changes to the tax code would start taking effect after December 31, 2021.
Under current U.S. tax law, the rate on capital gains events is about 20%.
On April 18, people who live in the United States have to file taxes on both crypto and fiat income.