A tax bill seeking to permit the exclusion of gain or loss on like-kind exchanges of virtual currency has been introduced within the U.S. House of Representatives.
To amend the Internal Revenue Code of 1986
The bill dubbed the “Virtual price Tax Fix Act of 2019” was initially introduced by Rep. Ted Budd (NC-R) on July 25 and observed the Committee on ways and means that. The bill seeks to introduce amendments to the Internal Revenue Code of 1986, that specifically determines:
“No gain or loss shall be recognized on the exchange of real property held for productive use in an exceeding trade or business or for investment if such real property is changed solely for real property of like the kind that is to be held either for productive use in a trade or business or for investment.”
The bill is seeking so “the exchange of virtual currency for the virtual currency of like-kind shall be treated in the same manner because of the exchange of real property for real property of like kind.”
In effect, if the bill became law, it'd preclude cryptocurrencies from double taxation underneath the interior Revenue Code.
“The Safe Harbor”
In July, U.S. congressman Tom emmer reintroduced his shark repellent for Taxpayers with Forked Assets bill so as to foster blockchain business growth within the U.S. by changing the burden on businesses to work out relevant tax laws. In Emmer’s own words, “taxpayers will solely befit the law once the law is obvious.”
The porcupine provision bill isn't meant to eliminate taxes on a hard-forked blockchain, however, aims to produce a secure harbor to investors who don't properly account for a tough fork in calculating their tax returns.
Budd antecedently saw the House of Representatives ways that and means that Committee on acknowledged problems with current tax laws on cryptocurrencies in June. Budd argued that cryptocurrencies ought to have a DE minimise tax exemption like foreign currencies.
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