If you are a crypto user and you buy and sell and use cryptocurrency for the purchase of goods, you should keep an eye on one particular piece of legislation. The bill was proposed by Congresswoman Suzan DelBene (D-WA-1). She introduced H.R. 5635, Virtual Currency Tax Fairness Act of 2020, on January 16, 2020. It is a proposed bill that excludes up to $200 of gain for tax purposes from the sale of virtual currency in personal transactions. The need for the legislation stems from the IRS’s treatment of all cryptocurrency as “property”, not true currency; whereby, arguably, a capital gain could occur from the purchase of a water of water (depending on the price of the water and your basis in your cryptocurrency payment). The reasonableness of this legislation is apparent on its face. But still, no movement by Congress.
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