Fees for cryptocurrency transactions

US lawmakers are once again trying to introduce a tax exemption for cryptocurrency transactions. Four MPs, two Republicans and two Democrats, proposed an amendment to the IRS tax code. It would exempt from taxation the transactions that generated profits under $ 200. The project is called “The Virtual Currency Tax Fairness Act of 2020” and is supported by Suzan DelBene (D-Wash.), David Schweikert (R-Ariz.), Darren Soto (D-Fla.) And Tom Emmer (R-Minn.). .)

Fees for cryptocurrency transactions

From a practical point of view, the bill could simplify the tax burdens of everyday crypto users. Current legislation requires them to keep detailed records for the smallest uses of cryptocurrencies. Digital assets began to be taxed by the IRS as early as 2014, when Bitcoin and altcoins were defined as taxable goods.

The proposed bipartisan amendment does not change this bureaucratic determination, but would provide assistance for low-level use cases. The proposal would not in any way affect substantial investments.
Neeraj Agrawal, Coin Center’s communications director, is one of the lobbyists for this bill. He said the current legislation is a burden on everyday users:

“This tax exemption would allow users to do simple things, like make minor transactions through dApps or send small amounts without having to make complex capital gains calculations every time,”

Agrawal said.

In the proposed form, the amendment would apply retroactively to transactions carried out in 2020.

However, it remains to be seen if the project will be approved. In 2017, Schweikert sponsored similar legislation, but set the limit at $ 600. The draft law did not reach the committee, being rejected in the House of Representatives.