Virtual Currency Tax Fairness Act of 2020

Bill: 116-hr-5635
Sponsor: full_name: Rep. DelBene, Suzan K. [D-WA-1]
Introduced: 2020-01-16
Policy area: Taxation
Subjects: Currency

Digital media

Income tax exclusion

Internet and video services

Internet, web applications, social media
Latest action: action_date: 2020-01-16
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2020-01-16
action_desc: Introduced in House
text: <p><b>Virtual Currency Tax Fairness Act of 2020</b></p> <p>This bill excludes from gross income, for income tax purposes, up to $200 of gain from the disposition of virtual currency in a personal transaction. The bill defines<i> virtual currency</i> as a digital representation of value that is used as a medium of exchange and is not otherwise currency.</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 5635 IN THE HOUSE OF REPRESENTATIVES January 16, 2020 Ms. DelBene (for herself, Mr. Schweikert , Mr. Soto , and Mr. Emmer ) 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 gain from disposition of virtual currency in a personal transaction.

1. Short title This Act may be cited as the Virtual Currency Tax Fairness Act of 2020 . 2. 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 disposition of virtual currency (a) In general Gross income of an individual shall not include gain, by reason of changes in exchange rates, from the disposition of virtual currency in a personal transaction (as such term is defined in section 988(e)). The preceding sentence shall not apply if the gain which would otherwise be recognized on the transaction exceeds $200. (b) 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. . (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 disposition 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, 2019.