House representative Susan DelBene has reintroduced a bill to cut taxes on crypto; she says the US needs to “ensure that our tax code evolves with our use of virtual currency”. Covered: Washington Congresswoman Reintroduces Bill To Reduce Crypto Tax Previous Versions of The Bill Washington Congresswoman Reintroduces Bill To Reduce Crypto Tax A new […] The post US Bill Reintroduced To Congress Removes Tax on Transactions Less Than $200 appeared first on CryptosRus.

US Bill Reintroduced To Congress Removes Tax on Transactions Less Than $200

House representative Susan DelBene has reintroduced a bill to cut taxes on crypto; she says the US needs to “ensure that our tax code evolves with our use of virtual currency”.

Covered:

  • Washington Congresswoman Reintroduces Bill To Reduce Crypto Tax
  • Previous Versions of The Bill

Washington Congresswoman Reintroduces Bill To Reduce Crypto Tax

A new iteration of a crypto bill has been introduced to the US Congress that would remove taxes on crypto transactions less than $200. The bill was proposed by Washington Congresswoman Suzan DelBene, who is a democrat.

The newly titled act, the  “Virtual Currency Fairness Act of 2022” is designed to lessen the gain from disposition on virtual currency. Essentially, Ms. DelBene believes that taxes on small transactions in the crypto space should not be taxed as capital gains.

She notes that the “gross income of an individual shall not include gain… and it should not be recognized if a transaction exceeds $200.” Essentially, the capital gains tax only apply to crypto transactions over $200.

Although this may seem like a small amount, it’s a great start. Currently, the federal short-term capital gains on if you held an asset for a year or less can range from 10-37% depending on your income. In other words, you can make massive gains and still owe over a third of it to the government.

The bill may urge traders and investors to split all of their transactions to be under $200 so they don’t get taxed. However, to counter this, a representative could propose an act that limits the amount of transactions per day. For now, there’s no need to worry about that for ETH users, as it would be tough to break up those high gas fees.

Previous Versions of The Bill

The bill has been sent to Congress on two other occasions. Representative David Schweiker proposed a bill exempting crypto taxes under $600 in 2017, and the bill was reintroduced in 2020 under the same name, but lowered the ceiling to $200.

The bill has received no votes to date, but the amount of supporters in the house continues to grow. The 2017 bill was introduced solely by David Schweiker, while the last two introductions to the bill have added more representatives. The 2020 bill was co-sponsored by Darren Soto and Tom Emmer, and the new version of the bill is co-sponsored by all of the previous representatives that have proposed the bill.

Tax season is approaching in the US, and if you sold, traded, or transferred your tokens be prepared to pay the high capital gains tax. If you HODLed, you don’t typically have to pay.  If signed into effect, the proposed bill will be for the entirety of 2022, so you’re in the clear if you’ve been making small trades so far this year.

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