Congress Considers Virtual Currency Tax Fairness Act
Time 1 Minute Read
Categories: Regulatory, Tax
On January 16, 2020, Reps. Suzan DelBene (D-Washington) and David Schweikert (R-Arizona) introduced H.R. 5635, the Virtual Currency Tax Fairness Act of 2020. Under current IRS guidance, taxpayers who sell virtual currency must recognize any capital gain or loss on the sale, subject to any limitations on the deductibility of capital losses. Taxpayers can also recognize gains due to fluctuations in exchange rates between virtual currencies and fiat currencies. H.R. 5635 would provide some relief from this tax treatment to encourage small consumer transactions in virtual currency by excluding from taxable gross income any gain by reason of changes in exchange rates of up to $200 incurred in respect of personal transactions. The bill also instructs the IRS to issue regulations providing for informational returns on virtual currency transactions for which gain or loss is recognized.
  • Partner

    Scott brings in-depth knowledge of SEC policies, procedures and enforcement philosophy to each representation. Scott regularly advises clients across a broad sector of the economy facing sensitive reporting, compliance and ...

The Hunton Andrews Kurth Blockchain Blog features opinions and legal analysis as we follow the development and use of distributed ledger technology known as the blockchain.

Search

Subscribe Arrow

Recent Posts

Categories

Tags

Authors

Archives

Jump to Page