New bill tackles cryptocurrency taxes
Health care and taxes aren't the only issues members of Congress are thinking about. Yesterday, Reps. Jared Polis and David Schweikert introduced the Cryptocurrency Tax Fairness Act, which is supported by advocacy group Coin Center.
The bill has two goals:
Bitcoin purchases below $600: The bill would create a de minimis exemption for purchases of goods and services made with cryptocurrencies.
- Currently, people have to account for capital gains taxes on those even if they simply bought a cup of coffee.
- This stems from the IRS' decision in 2014 to view Bitcoin as property, which means that it's subject to capital gains taxes on profits.
Reporting guidance from the IRS: The bill's other aim is to force the Treasury Department to provide more reporting guidelines for cryptocurrency transactions to which capital gains taxes apply.