Georgia Becomes the Latest to Propose Accepting Cryptocurrencies for Taxes
Cryptos and taxes have been in the news cycle quite a bit in recent weeks. At least here in the US.
As a refresher, the [IRS] https://www.irs.gov/newsroom/irs-virtual-currency-guidance) treats cryptos, which it calls virtual currencies, as property. Which means the general rules for property transactions apply.
That was almost a good thing until the recent tax bill amended like-kind exchanges to “real” property. Meaning, going from BTC to ETH or any other crypto is a taxable event. Onerous.
But we are seeing some states take actions on their own. Let’s see what’s going on.
On February 8 Arizona passed Senate Bill 1091 which lets residents pay their taxes in bitcoin and other approved cryptocurrencies. The bill is now with the House of Representatives.
If passed we could see more states follow suit and other legislators warm up to cryptocurrencies.
There also another piece of legislation in motion in Arizona, House Bill 2602. This one would protect cryptocurrency node operators.
More recently Wyoming’s Senate passed Senate File Number 0111 which would exempt virtual currencies from property taxation. Like Arizona, it now has to go before the House.
Wyoming also has HB0019 which exempts virtual currency from the Wyoming Money Transmitter Act. And HB0070 which removes cryptocurrency utility tokens from under the umbrella of security tokens. Both unanimously passed the House and are being introduced in the Senate.
Colorado has Senate Bill 86 which proposes using the blockchain to governmental data security.
And now a bill has been proposed in Georgia to consider bitcoin for use in tax payments as well.
What we really need is for the Crptocurrency Fairness Act to get passed, which would exempt bitcoin transactions from IRS reporting if they are below $600.
Best I can tell it was introduced to the House back on September 7, but it didn’t make it into the tax bill in November. Hopefully it can be introduced again.
What do you think, will we ever get some sensible crypto tax legislation?
and trade cryptos on Binance
This is extremely bullish to me. I think people are underestimating how important this is for the adoption of bitcoin. I'll be following this closely to see how it unfolds. Exciting times ahead for crypto!
Agree, gives legitimacy to the whole space
very good post sir... keep posting.. God bless you
We all knew that there would be attacks on crypto as it threatens the status quo... for every story like this, it makes crypto more and more bulletproof from these attacks.
That's the irony, the more they attach crypto the stronger it gets ;-p
This sounds like really useful legislation being passed in these states. Remove low value transactions from reporting and it will make taxes a lot easier and make people more likely to report properly.
If it's onerous for us it'll be onerous for the IRS too... hopefully they'll change to sensible rules.
Governments talking about crypto... uh... make me sick!
This has started offroad and will grow offroad :)) just like the media got out of their hands, manipulation and control with social medias
They're walking into the lion's den ;-p
So true 👍
I think that this is very important. One of the main sources of value for fiat currencies is that governments accept them for taxes. If cryptos start being accepted, then this is a major step to be real mainstream money!
It's the same argument they use for fiat... they might actually have to call crypto money!
this is good news, where we have not allowed the cripto currency
Cheers!
let's continue to develop virtual money
Yes!
Thanks for the post.
The issue as I see it is that there are so many of these politicians that are crooked and very deceptive and they need to watched and call them out when they are up to their shenanigans.
Thanks
dubloon135
Agree, we need smaller government!
good postt
cheers!
good post, thank you
Thanks!