The push from President Donald Trump to change the current state of taxes in the country could potentially benefit those who use bitcoin.
With new tax reform coming from the president as well as the Republican Party as a whole, the hopes are high that taxes will be eased and cryptocurrency may be added in to the reform.
With the decision in 2014 by the IRS to treat cryptocurrencies as though they as property in terms of taxation, the agency has been met with controversy over not informing consumers how to genuinely report their bitcoin purchases and gains as a whole.
A bill introduced earlier this month known as the Cryptocurrency Fairness in Taxation Act (CFTA), could help to make the IRS responsible for collecting those taxes.
Eve Lieberman, who serves a the chief of staff to Representative Jared Polis, who with David Schweikert, introduced the bill stated that “the bill is kind of a reaction to the 2014 IRS decision that classified cryptocurrencies as property, and that means they’re subject to capital gains tax.”
The bill has stated that cryptocurrency transactions under the amount of $600 will be exempt from the necessity to report the earnings. The bill also provides for a better way to guide customers from the IRS on the correct methods for reporting transactions.
Lieberman recently stated at a workshop on cryptocurrency taxation in Washington D.C. that the bill will strategically be made before any form of it is shown to congress and the ball begins to roll on taxation.
With the bill going before congress in the next few months, the hopes are high that the caucus can get the bill put into the president’s final form of a tax reform bill. Time will tell what occurs in the next few months regarding Trump’s positions and final rulings on the taxation.