The USA House of Representatives to Discuss Another Tax Bill
The new document is aiming to free cryptocurrencies from double taxation. The draft bill introduced by Representative Ted Budd (NC-R) is currently under consideration of the United States House Committee on the Budget awaiting approval.
Ted Budd believes that the Internal Revenue Code of 1986 should be amended so that cryptocurrencies would no longer be considered as property.
As for now, the International Revenue Service classifies Bitcoin as property, and the exchange of virtual currency for virtual currency or services is considered to be a sale of assets, like in the case with real estate. These operations are taxed at a rate of 40%. It slows the mass adoption of the technology down, as per Ted Budd.
The draft bill is seeking to preclude cryptocurrencies from double taxation and immediate record.
We recall that there are a few cryptocurrency-connected draft bills under consideration of the House of Representatives. In spring, the document known as the Token Taxonomy Act was reintroduced. It implies the amending of The Securities Act of 1933 and The Securities Exchange Act of 1934 by excluding tokens from the classification as securities.
Moreover, the authors of the bill proposed to free the crypto transactions below $600 from taxation.
The industry has been waiting for the new guidance on cryptocurrencies by IRS, which has recently started to send 6174-A letters to investors, asking to report the revenues from cryptocurrency operations.
In July, U.S. Congressman Tom Emmer reintroduced his Safe Harbor for Taxpayers with Forked Assets bill to foster blockchain industry growth in the U.S. by lessening the burden on businesses to figure out relevant tax laws. In Emmer’s own words, “taxpayers can only comply with the law when the law is clear.”