Bipartisan crypto legislation was introduced by Senators Pat Toomey (R-PA) and Kyrsten Sinema (D-AZ) on July 26, 2022. If enacted, the Virtual Currency Tax Fairness Act would exclude from gross income gain on certain de minimis "virtual currency" transactions where the total value and total gain is less than or equal to $50, adjusted for inflation after 2023. Additional limitations would apply, including an aggregation rule as well as restrictions on the types of property which may be received in the exchange, such as where the taxpayer receives cash or cash equivalents, or property used in the taxpayer's trade or business or property held for the production of income. As discussed here, a similar proposal was included in an earlier bill proposed by Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) that contained a $200 de minimis exception from gross income for gain or loss realized on certain dispositions of "virtual currency."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
