Posted 2 years ago | by Ben Armstrong
North Carolina Congressman Pushing Crypto Tax Relief
Taxes on digital assets need a revamping & one North Carolina Congressman is leading the charge. Representative Ted Budd (R) has reintroduced a bill that would help simplify the tax code on digital assets that the IRS established in 1986. The bill is called "The Virtual Value Tax Fix Act" and was reintroduced on July 25th.
The bill will now move on to the U.S. House of Representatives Ways & Means Committee. The bill would end double taxing cryptocurrency transactions. Budd explains what the current conundrum is:
The use of digital assets is already treated as a sale of the asset, even though the economic reality of the transaction is a purchase of a simple consumer good.
If the bill were to pass then the relief would be immediate.
This comes as many countries such as the United States are realizing that this asset class is here to stay.
There have been other cryptocurrency & digital assets bills including the "Safe Harbor for Tax Payers with Forked Assets Act of 2019" & the "Token Taxonomy Act". However, none of these have been passed yet.
It's only a matter of time before cryptocurrency legislation gets passed.
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