Crypto Tax Bill introduced in the House of Representatives! A Crypto Tax Bill in the US House of Representatives seeks to exclude gains or losses on like-kind exchanges of virtual currency! This Crypto Tax Bill will be debated first by the lower house of the US Legislative Body.
The Crypto Tax Bill seeks to amend the Internal Revenue Code of 1986. The bill is currently called the “Virtual Value Tax Fix Act of 2019” and was initially introduced by Ted Budd (NC-R) on July 25th. The bill was referred to the Committee on Ways and Means. The bill seeks to amend a part the Internal Revenue Code of 1986 which currently reads as follows –
“No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.”
The goal of this bill is to ensure that “the exchange of virtual currency for virtual currency of like kind shall be treated in the same manner as the exchange of real property for real property of like kind.”
The Virtual Value Tax Fix Act of 2019 will attempt to preclude cryptocurrencies from double taxation as it is currently under with the current law.
This push for crypto friendly bills comes at a time when the US House of Representatives is fast becoming crypto allies. Last Month, Tom Emmer reintroduced his Safe Harbor for Taxpayers with Forked Assets bill to try to encourage blockchain industry growth in the US.