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‘‘(i) sugar, malt or malt substitute, 
tea, or coffee, and 
‘‘(ii) not more than 20 percent other 
wholesome ingredients.’’. 
VIRTUAL CURRENCY 
SEC. 15003. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 139G (as added by this Act) the 
following new section: 
‘‘SEC. 139H. GAIN FROM SALE OR EXCHANGE OF VIRTUAL 
CURRENCY. 
‘‘(a) IN GENERAL.—Gross income shall not include 
gain from the sale or exchange of virtual currency for 
other than cash or cash equivalents. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The amount of gain ex-
cluded from gross income under subsection (a) with 
respect to a sale or exchange shall not exceed $600. 
‘‘(2) AGGREGATION
RULE.—For purposes of 
this subsection, all sales or exchanges which are part 
of the same transaction (or a series of related trans-
actions) shall be treated as one sale or exchange. 
‘‘(c) VIRTUAL CURRENCY.—For purposes of this sec-
tion, the term ‘virtual currency’ means a digital represen-
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•HCON 97 IH 
tation of value that is used as a medium of exchange and 
is not otherwise currency under section 988. 
‘‘(d) INFLATION ADJUSTMENT.—In the case of any 
taxable year beginning in a calendar year after 2018, the 
dollar amount in subsection (b) shall be increased by an 
amount equal to— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year begins, determined by substituting 
‘calendar year 2017’ for ‘calendar year 1992’ in sub-
paragraph (B) thereof. 
Any increase determined under the preceding sentence 
shall be rounded to the nearest multiple of $50.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter B of chapter 1 of such Code 
is amended by inserting after the item relating to section 
139F the following new item: 
‘‘Sec. 139H. Gain from sale or exchange of virtual currency.’’. 
(c) REPORTING OF GAINS OR LOSSES.—The Sec-
retary shall issue regulations providing for information re-
turns on virtual currency transactions for which gain or 
loss is recognized. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to transactions en-
tered into after December 31, 2017. 
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ALLOWANCE OF DEDUCTIONS AND CREDITS RELATING TO 
EXPENDITURES IN CONNECTION WITH MARIJUANA 
SALES
CONDUCTED
IN
COMPLIANCE
WITH
STATE 
LAW 
SEC. 15004. 
(a) IN GENERAL.—Section 280E is amended by in-
serting before the period at the end the following: ‘‘, unless 
such trade or business consists of marijuana sales con-
ducted in compliance with State law’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to taxable years end-
ing after the date of the enactment of this Act. 
Æ 
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