The idea of a national tax code that would be built around cryptocurrency was tabled by congressman Ted Budd as he introduced a bill to the House of Representatives. The bill which was filed on July 25, 2019, has a stated goal to, “to allow exclusion of gain or loss on like-kind exchanges of virtual currency.” According to an article in Bitcoin Magazine, attributed to Landon Manning, this discussion is now in the news.
Under the current tax code, gains and losses realized in transactions like-kind real property remain unrecognized. Having proposed a similar bill this year, the goal the Mr Budd wants to achieve is to make the IRS to stop double-taxing crypto users on both crypto assets as property and on like-kind exchanges on crypto assets. There have been attempts for bills to tax forkcoins and similar assets as well. Our View: It will take several years for crypto to be truly legitimate and to be recognized by regulators so the idea of taxing digital assets will continue to be tabled for the next 2 to 3 years. Be patient it will come.