New US law: Digital currency transactions with less than $ 200 in revenue are not taxed

Members of the US House of Representatives recently introduced a bill to amend the digital currency tax law. Under the new plan, income from a digital currency transaction will not be taxed if it does not exceed $ 200.

To Report Bitcoin Magazine Exempts from taxing bitcoins and digital currencies with a profit of $ 200 or less, according to a bill introduced in the US House of Representatives on Thursday. The bill aims to make it easier for American traders to use digital currencies as a means of payment. At present, American investors must report their profits from the sale of their digital currencies to the government and pay taxes on them.

Suzan DelBene, one of the authors of the bill, said in a statement:

Older American laws and regulations do not allow the use of digital currencies in people’s daily lives. Instead, most of these assets are treated as ETFs. However, digital currencies have evolved rapidly over the past few years and there are more opportunities to use them in everyday life. The bill removes additional and costly regulations, paves the way for more innovation, and ultimately boosts America’s digital economy.

David Schweikert, in collaboration with Darren Soto and Tom Emmer, all members of the US House of Representatives, wrote the law entitled The Virtual Currency Tax Fairness Act. Presented to the parliament.

Schweikkert said in a statement:

Digital currencies are changing the way we live our daily lives. That’s why the United States has to recognize them and treat them fairly in its tax system. This law is an important step for the United States and can pave the way for the growth of the digital economy.

When an American person uses bitcoin to buy a good or pay for a service, he or she is actually selling some of his or her assets in the best interests of the US Internal Revenue Service. If this person has acquired his spent bitcoins at a lower dollar price than at the time of payment, this price difference will be considered as a capital gain. In this case, he must report his transaction and pay the tax.

With the bill, lawmakers are seeking to amend the 1986 U.S. Tax Code, which would exclude taxes if the profit from a digital currency transaction does not exceed $ 200. Thus, by targeting smaller transactions, the law can somehow encourage traders to use digital currencies as a means of payment, or at least provide the basis for such a move.