The recently Taxonomy Act (TTA) will create a tax exemption for 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 (), the 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 to purchase simple things like a laptop, plane tickets, or even in writing a , which requires the expenditure of a small amount of ether () or other so-enabled . Legally, Brito noted, regulatory authorities could choose to require reporting these small expenditures.
As previously by Cointelegraph, the TTA, if passed, would also exclude from classification as a security. The TTA would also delimit the jurisdiction of the Commodity Futures Commission () and the Federal Trade Commission (FTC), as well as provide regulatory certainty for the compliance and enforcement of crypto statutes.
Published at Tue, 14 May 2019 02:24:04 +0000
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