Token Taxonomy Act Includes De Minimis Tax Exemption for Crypto

528 aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy84YTRjMjU0MGQ3YjUxNTU2NzUzYWRiZTQ3OGU1ZTg3Ni5qcGc

The recently reintroduced Token Taxonomy Act (TTA) will create a de minimis tax exemption for crypto transactions under $600, according to the executive director of Coin Center, Jerry Brito, at Consensus 2019 on May 13.The de minimis tax exemption stipulates that if a crypto owner experiences a capital gain up to $600 of crypto, then that owner is not required to report the gain to the Internal Revenue Service (IRS), the United States’ tax authority.Brito notes that this situation parallels how small gains on foreign currencies were treated prior to a de minimis proviso that was introduced in the 1990s by Congress. Before then, if someone purchased foreign currency to take a short vacation in another country, any capital gains experienced over the course of holding that currency would technically have to be reported.Brito added that one could technically be obligated to report capital gains when using cryptocurrencies to purchase…

Read the original article here

IF YOU LIKED THIS ARTICLE CLICK SHARE