Digital Currency Transactions Bitcoin ETH and Others Under 200 Dollars Exempted from Capital Gains Tax

Dennis Porter Shared: “Just in – Member of Congress introduces bill exempting Bitcoin and digital currency transactions under 200 dollars from capital gains tax.”

Community Response:  Interesting proposed bill. Seems like this would be a massive tax reporting nightmare/burden for anyone wanting to comply. Does this mean I can pay someone 10 payments of 200 dollars for a 2000-dollar item – and not have a taxable event?

This sounds like it was likely to fall under the same limitations of what they are doing with reporting Venmo sales over 600 dollars. You could try and break up 6000 dollars purchase into 11 payments, but the IRS will likely figure it out and tax you properly on it.

The new Venmo law is you will get a 1099k if your total transactions under the goods and services category exceed 600 dollars for the year. That’s why you have to make sure your transactions are categorized correctly (friends and family vs goods and services).

Ha. It’s the gain, not the value. So, if you buy a chunk at 199.99 dollars it can double before you would owe tax.

No, that’s wrong. It uses gains, it’s ONLY on transactions.

Only 200 dollars. Let the bill pass then we get an amendment bill to amend these 200 dollars to 5 figures.

200 dollars? So, we are eliminating ETH transactions since gas fees exceed 200 dollars per transaction.

This would be huge if passed. Enough with paying visa and MasterCard huge sums when LN can do it for a fraction of the cost.

This would be a major win for the US economy and also help fight inflation by lowering costs.

You understand how easy it is to pay 1,000 in 5 consecutive payments. I will invent a bot that does that.

Always was and always will be exempt. Where did these people get the idea that they’re invited to the party that was created largely to spite their crimes?

So, the “friendly” exchanges will offer multiple 199.99 dollars trades? Like depositing 1 dollar less than the amount to trigger red flags at a bank? 200 dollars is an Arbitrary $ amount.

The point of the bill is to allow people to buy coffee or dinner without triggering a taxable event. It’s a start, I guess.  How generous!

When a few more countries adopt BTC as legal tender, they will have to come to terms with dropping CAP gains on BTC so that they can abide by international treaty.

Should be at least 10K dollars, but it is a start.

I say bump that up to at least 15K dollars. That’s how much you can give tax-free. If you can give it without extra tax, you should be able to spend it without extra tax.

Exempt Transactions under 2 BILLION for taxes and people would celebrate that. Did they say?

The gas fees are so high, who even does a 200 dollars transaction?

Paves the path for BTC to be used as a part of your everyday transactions. After that comes reserve status.  It’s a start, a poor one, but a start When the US gets serious maybe it will be worth a visit, but for now, there are plenty of places to go that are seriously wanting us all to visit and aren’t afraid to let us know.

200 dollars is great but what is the maximum number of transactions in the period they are measuring? I HFT and many of my “transactions” are under 200 dollars but my transaction count is quite high.

Individual transactions under 200 dollars or 200 dollars total? I mean either way it’s a start, but come on they’ve never done a transaction using ETH.