?Proposed Laws From Congress Are Targeting Cryptocurrencies ? [IRS Cryptocurrency Taxes] ? - a podcast by FAS CPA & CONSULTANTS
from 2021-03-16T17:00
This bill was introduced in Congress with bipartisan support on Thursday, January 9th, 2020. The law is meant to create an exception for the capital gains taxes that occur when virtual currency is used for payment in everyday commerce.
ON ANOTHER NOTE
Some analysts say that there is a 60% likelihood for a Bitcoin ETF approval coming through in 2020 The gain is created because current US law deems the use of Bitcoin to pay for a good or service to be a sale of the Bitcoin transacted, which creates a taxable event. The use of virtual currency is complicated by wild price fluctuations, and the requirement for users to track every gain they made every time they use Bitcoin as a medium of exchange, hampers the currency. In this version of the law, capital gains taxes are exempt when the gains made by the taxpayer as a result of their transaction is equal to or less than $200, an exemption that already exists for foreign currencies. This law would go a long way toward equalizing Bitcoin with other currencies when it comes to its daily use in commerce. If the bill is passed, it would be instated for the fiscal year of 2020.
ON ANOTHER NOTE
Surveys suggest that more financial advisors will add Bitcoin to their client’s portfolios in 2020. As technology continues to develop cheap and speedy, virtual currency transactions become possible, combined with the bill, it would no doubt be helpful when more people start using virtual currency for small payments. Increased acceptance of digital assets in commerce and the financial sector combined with an upcoming halving event are good enough reason to except a bull market for Bitcoin in 2020. Strategic Changes To The Whitepaper Suggest That LIBRA Will Be Adapted To Address Concerns That It Will Be Classified As A Security
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