US Regulation Bitcoin Transactions
2 min read

A Tax Break for Small Scale Bitcoin Transactions

By Editorial Team

If you are a small time Bitcoin investor in the USA, then you may be happy with the proposal that is being made by two members of the House of Representatives. They would like to create a tax exemption for purchases made with crypto currencies.

As a background to the proposal, it is worth noting that the IRS treats Bitcoin like a property. In other words, it should be subjected to the same capital gains tax that other properties fall under. However, the wording was not particularly clear. For example, they did not take into account the tax impact of purchases with an appreciated Bitcoin.

It was for this reason that Reps Jared Polis and David Schweikert are trying to alleviate some of the burden from this taxation. They are leaders of the Congressional Blockchain Caucus.

According to a post by Coincentre, the legislation would create a minimum exemption before the tax would actually be applied. The minimum that is being proposed by the lawmakers is currently $600 and will be applied from the 31 December this year.

Jerry Brito, executive director of the Coin Centre said that the legislation was comparable to those which apply to purchases with foreign currencies. In an interview with CoinDesk he mentioned that

What we have done with this bill is do something very similar, to create a de minimis exemption for small purchases

This comes at a time when House republicans are trying to get comprehensive tax reform through the congress so we should be cautiously optimistic. Yet he did make it clear that this piece of legislation should be unobjectionable to anybody. For those interested they can read about the actual bill here.

Editors at large. Posting the latest news, reviews and analysis to hit the blockchain.
View all posts by Editorial Team -> Best Crypto Deals ->

Latest Posts

PrimeXBT vs Bybit 2022: Which Exchange is Best for Crypto Trading?

PrimeXBT vs Bybit 2022: Which Exchange is Best for Crypto Trading?

September 27, 2022 26 min read
How to Buy Bitcoin on Binance

How to Buy Bitcoin on Binance

September 26, 2022 7 min read
How to buy Polkadot at FTX
How to Buy Polkadot (DOT) on FTX Exchange
How to buy Polkadot at FTX

How to Buy Polkadot (DOT) on FTX Exchange

September 23, 2022 9 min read
Crypto Safety 101: How to Protect your Crypto

Crypto Safety 101: How to Protect your Crypto

September 22, 2022 44 min read
Blockchain Security: How to Understand Blockchain Audits to Stay Safe in DeFi

Blockchain Security: How to Understand Blockchain Audits to Stay Safe in DeFi

September 21, 2022 26 min read
IDEX Review
IDEX Review 2022: The First Hybrid Approach to Non-Custodial, High-Performance Crypto Trading
IDEX Review

IDEX Review 2022: The First Hybrid Approach to Non-Custodial, High-Performance Crypto Trading

September 14, 2022 37 min read
Using Modern Portfolio Theory to Build a Crypto Portfolio
Using Modern Portfolio Theory and How to Build a Crypto Portfolio
Using Modern Portfolio Theory to Build a Crypto Portfolio

Using Modern Portfolio Theory and How to Build a Crypto Portfolio

September 12, 2022 48 min read

Related Posts

Crypto Safety 101: How to Protect your Crypto

Crypto Safety 101: How to Protect your Crypto

September 22, 2022 44 min read
Blockchain Security: How to Understand Blockchain Audits to Stay Safe in DeFi

Blockchain Security: How to Understand Blockchain Audits to Stay Safe in DeFi

September 21, 2022 26 min read
Top 5 Crypto Scams to Avoid in 2022

Top 5 Crypto Scams to Avoid in 2022

September 7, 2022 30 min read
What is Etherscan and how to use it
Etherscan Review: Public Face of Ethereum
What is Etherscan and how to use it

Etherscan Review: Public Face of Ethereum

August 30, 2022 16 min read
Can you still make money mining Monero
Can You Still Make Money Mining Monero in 2022?
Can you still make money mining Monero

Can You Still Make Money Mining Monero in 2022?

August 27, 2022 16 min read
Crypto Staking Complete Guide
Stake and Earn: Complete Guide to Staking Crypto
Crypto Staking Complete Guide

Stake and Earn: Complete Guide to Staking Crypto

August 25th, 2022 33 min read
What is a rug pull
Crypto Rug Pulls: How To AVOID Them and Keep SAFE!
What is a rug pull

Crypto Rug Pulls: How To AVOID Them and Keep SAFE!

August 13, 2022 15 min read