A new tax bill on crypto in the US – good or bad news?
A new tax bill on cryptocurrency was introduced in the United States House of Representatives. The bill is aiming to allow the exclusion of gain or loss on similar exchanges of virtual currency. That means that BTC might be tax-exempt.
The name of the bill is the Virtual Value Tax Fix Act of 2019, originally introduced by Ted Budd. The bill has to introduce amendments to the Internal Revenue Code of 1986. According to that code, no gain or loss can be recognized on the exchange of real property. So if you swap one car for another, it is not recognized as productive use in a trade or business. So this new bill would treat cryptocurrency the same as real property.
If the tax bill gets accepted, it will preclude cryptos from double taxation under this code. Additionally, cryptocurrency would become a real deal in the world. Not that it is not a real deal currently, but now there would be an actual law somehow protecting it. This is a big step in the cryptocurrency world.
Bitcoin price and updates
Overall BTC is on the rise again after the major drop in July. As expected, August has been a more productive month for the famous cryptocurrency. We mainly see bullish signs, and though the market tried to go bearish at some point, the bulls won’t let it happen.
At the time of writing, the bitcoin price is at $11,931.30. There is hope that BTC will be able to pierce the $12,000 resistance by the end of the day. This will be great news as long as the price manages to stay above that resistance, turning it into support. With the current tax bill being introduced in the US, this should help with the popularity of all kinds of crypto. Still, as we have learned, BTC remains to be the favorite among all. So, if the bill gets accepted, the rise in demand is unavoidable.