BITCOIN TAX EXEMPTIONS - Your Daily Hash - 9/14/17

BITCOIN TAX EXEMPTIONS - Your Daily Hash - 9/14/17

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Two United States House of Representative members have filed a bill with the purpose of creating a tax exemption for any purchase that has been made with cryptocurrencies.

Did you know that any profit or loss made when transacting with cryptocurrency triggers a captial gains tax?

In 2014, the IRS declared that it would consider cryptocurrencies property for tax purposes.

You can read the release HERE.

Based off of the wording of the IRS release, this means..

if you bought BTC at $1 USD
and the value of BTC increased to $2
and later bought a bottle of water at $1 USD,
YOU WOULD BE SUBJECT TO A CAPTIAL GAINS TAX!

See below:

Q-6: Does a taxpayer have gain or loss upon an exchange of virtual currency for other property?
A-6: Yes. The taxpayer has a taxable gain if the fair market value of the property received is less than the adjusted basis of the virtual currency.
Source

The bill, spearheaded by Reps. Jared Polis and David Schweikert, was created for the purpose of alleviating some of the issues caused by the Cryptocurrency Fairness Tax Act (irony).

If this bill is passed it will create a de minimis (too trivial or minor to merit consideration, especially in law) exemption for cryptocurrency payments below $600 after December 31, 2017.

In English: You won't be paying a capital gains tax for transactions below $600

What do you guys think about this? Comment below

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Sources:
US Lawmakers Seek Tax Exemption for Bitcoin Transactions Below $600: https://www.coindesk.com/us-lawmakers-seek-tax-exemption-bitcoin-transactions-600/

IRS to Tax Digital Currencies as Property, Not Currency: https://www.coindesk.com/internal-revenue-service-treat-digital-currencies-property/

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WHY BITCOIN IS A SCAM