The US Senate Proposed To Exclude Crypto Transactions In The Amount Of Up To $50 From Taxation

A bill has been introduced in the US Senate that would exempt transactions with digital assets worth up to $50 equivalent from capital gains tax. 

Senators Pat Toomey and Kirsten Sinema became the authors of the draft Virtual Currency Tax Fairness Act.

If adopted, the document will exempt purchases in cryptocurrency from taxes. The $50 limit can be further adjusted for inflation.

The bill does not apply to transactions between digital assets and fiat. It suggests that “all sales or exchanges that are part of the same transaction (or a series of related transactions) should be considered as one sale or exchange.”

Users of cryptocurrencies in the US are currently required by law to report income earned from spending in digital assets. In other words, in the US, cryptocurrency is considered primarily as an investment, and not as a means of payment.

The community supported the initiative of the senators, in particular Coin Center, Blockchain Association and the Association for Digital Asset Markets.

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