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Bipartisan crypto legislation was introduced by Senators Pat
Toomey (R-PA) and Kyrsten Sinema (D-AZ) on July 26, 2022. If
enacted, the Virtual Currency Tax Fairness Act would exclude from
gross income gain on certain de minimis “virtual
currency” transactions where the total value and total gain is
less than or equal to $50, adjusted for inflation after 2023.
Additional limitations would apply, including an aggregation rule
as well as restrictions on the types of property which may be
received in the exchange, such as where the taxpayer receives cash
or cash equivalents, or property used in the taxpayer’s trade
or business or property held for the production of income. As
discussed here, a similar proposal was included in an
earlier bill proposed by Senators Cynthia Lummis (R-WY) and Kirsten
Gillibrand (D-NY) that contained a $200 de minimis
exception from gross income for gain or loss realized on certain
dispositions of “virtual currency.”
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