While the regulatory uncertainty in cryptocurrencies continues, one of the most curious issues is tax. Although some countries have shown their stance on crypto, a global regulatory structure has not yet been formed. At this point, while continuing to work actively in the USA, another piece of news came from the US Senators. Senator Patrick Toomey and Kyrsten Cinema are trying to get Americans off the crypto tax.
Bill from US Senators for Crypto Tax
Studies on the regulation of cryptocurrencies in the USA continue at full speed. On the one hand, regulators say that they are doing their review on the industry, on the other hand, complaints that regulators are late for regulations are increasing. US Senators Pat Toomey and Kyrsten Cinema presented the Virtual Currency Tax Justice Act, which provides exemptions from taxation on purchases made in crypto.
Currently, crypto users in the US are legally required to report their crypto earnings. This causes crypto to be considered an investment tool rather than a payment tool. The IRS, on the other hand, doesn’t seem to be interested in maintaining these small transactions. But crypto users have long sought legal protection that already exists for currency use in the US.
In the bill submitted by Toomey and Cinema, there will be no tax on transactions with a value of less than $50. In addition, this amount will be applied with a provision to adjust for inflation. However, all sales or swaps that are part of the same transaction (or a set of related transactions) without transacting between crypto and fiat currency will be considered a single sale or swap.
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