To amend the Internal Revenue Code of 1986 to exclude from gross income de minimis gains from certain sales or exchanges of virtual currency, and for other purposes.

Bill: 115-hr-3708
Sponsor: full_name: Rep. Schweikert, David [R-AZ-6]
Introduced: 2017-09-07
Policy area: Taxation
Subjects: Currency

Digital media

Income tax exclusion

Internet and video services

Internet, web applications, social media
Latest action: action_date: 2017-09-07
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2017-09-07
action_desc: Introduced in House
text: <p>This bill amends the Internal Revenue Code (IRC) to exclude from gross income up to $600 (adjusted for inflation after 2018) in gain from the sale or exchange of virtual currency for other than cash or cash equivalents. &quot;Virtual currency&quot; is a digital representation of value that is used as a medium of exchange and is not otherwise currency under provisions of the IRC related to foreign currency transactions.</p>

tv_txt: I 115th CONGRESS 1st Session H. R. 3708 IN THE HOUSE OF REPRESENTATIVES September 7, 2017 Mr. Schweikert (for himself and Mr. Polis ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to exclude from gross income de minimis gains from certain sales or exchanges of virtual currency, and for other purposes.

1. Virtual currency (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139F the following new section: 139G. 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 excluded 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 transactions) shall be treated as one sale or exchange. (c) Virtual currency For purposes of this section, the term virtual currency means a digital representation 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 subparagraph (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. 139G. Gain from sale or exchange of virtual currency. . (c) Reporting of gains or losses The Secretary shall issue regulations providing for information returns 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 entered into after December 31, 2017.