Alex Coin 
La “ Virtual Currencies Tax Equity equity is the funds that would be returned to a company's shareholders if all of the company's assets were dissolved and all debts were paid off in the event of liquidation. Law “seeks to exempt tax liabilities for Bitcoin transactions if the associated profits are less than USD $200.
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A new legislative proposal in the United States is looking to reduce friction in the use of Bitcoin for everyday payments by eliminating taxes for small transactions with the cryptocurrency.
As reported by Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. Magazine a group of deputies presented a bill this Thursday that would would exempt transactions from Bitcoin of tax liabilities if the associated capital capital is most commonly defined as the large sum of money you would use to invest. gains gains refer to an increase in value or profit. are less than $200 USD . Current regulations require reporting as taxable income any gain from the sale of cryptocurrencies, regardless of their size or purpose.
The bipartisan bill, titled “ Virtual Currencies Tax Equity Law “The bill, drafted by Republican Representative David Schweikert and co-authored by Republican Representative Suzan DelBene. Representatives Darren Soto and Tom Emmer are listed as co-sponsors of the proposal.
“ Outdated regulations on virtual currency currency is a medium of exchange that defines value. do not take into account an account is essentially a whose purpose is to track the financial activities of a specific asset/ its potential for use in our daily lives, but treat it more like a stock or an ETF an Exchange-traded Fund, an investment fund that users trade on exchanges and trading platforms. [exchange-traded fund]. “said DelBene in an interview with the aforementioned media; and added:
However, virtual currency has evolved rapidly in recent years with more opportunities to use it in our daily lives. This common-sense bill cuts red tape and opens the door to more innovation, ultimately growing our digital economy.
Project seeks to promote the use of Bitcoin for everyday payments
The publication emphasizes that, for the purposes of the law, the use of Bitcoin and other cryptocurrencies as payment methods involve a sale to the U.S. Internal Revenue Service (IRS), as the payer disposes of a portion of their digital currency holdings in exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. for a good or service.
If the funds that were spent had been acquired at a lower U.S. dollar price, the difference would be characterized as capital gains, for which reporting and taxation would be required, he says. Bitcoin Magazine .
As such, the bill seeks to amend the Internal Revenue Code the action of coding is to write programming statements for a program. of 1986 to eliminate such requirements when the capital gain realized does not exceed $200. In this regard, the regulations specifically target smaller transactions in an attempt to encourage, or at least provide greater ease of use for, the use of Bitcoin as a payment mechanism.
“ This legislation is an important step forward and lays the foundation for the growth of the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. economy. “Schweikert stressed in a statement quoted in the report. The author of the proposal continued:
Virtual currency is reshaping our daily lives, and America must recognize this and work to treat these currencies fairly in our tax code.
According to the public records of the U.S. Congress The proposed legislative amendment was initially introduced in January 2020 . At that time, the bill was referred to the House Ways and Means Committee.
As of press time, none of the legislators have recently shared or commented on the proposal on their social media channels. Nor have they been particularly enthusiastic aboutBitcoin in the past, except Emmer, who on Twitter has repeatedly demanded that Securities and Exchange Commission (SEC) Chairman Gary Gensler give a clear answer on the denial of approval for an ETF from Bitcoin a topic that has historically been of great interest within the crypto-community.
Still waiting, @GaryGensler https://t.co/e26TnknBG5
– Tom Emmer (@RepTomEmmer) January 3, 2022
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Article by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva
