This is an excellent law. It is a pity, in our country is unlikely to introduce something like this

Hopefully something like this will get passed!

I suppose a spreadsheet could handle the cost basis analysis, but that is crazy for a pack of gum or the like!

Interesting news. Reminds me of gambling winnings anything over 600$ in most states gets reported now. Very good post. Thanks

This is a very good first step. Because it's absolutely ridiculous to try to tax Bitcoin or any other cryptocurrency with a 15% capital gains which only encourages people to hold their currency as an investment for a second reason.
Where as if Bitcoin was allowed to freely move throughout our economy, that same thousand dollars -which would yield $150 in capital gains taxes would quickly generate even more taxes if it was allowed to circulate freely generating at least 5% sales tax would lead to $1,000 in taxes after circulating just 20 times.
I just think governments are absolutely stupid, they've obviously gotten too big and have too much control.

Your post is always worth reading. Thanks for the great suggestions you have given.

nice information @jrcornel, i hope govt. will approve it so the peoples of US can use some cryptos freely, thanks for sharing.

Yes @jrcornel

Crytocurrency now is very helpful employment opportunities for us

How will the government be facing taxation issues? We never know, we just wait

But I am very happy now with the cryptocurrecy system, this is very helpful to us, because in our country here is very hard to find real work

I hope they really care about expanding technology  for the benefit of the consumers and not just controlling it for the benefit of themselves.

Cryptocurrency Tax Fairness Act
very valuable and informative post u shared. thnx and appreciated.

I can totally imagine people buying Ferraris on credit with $600 monthly payments. :)

nice information @jrcornel, i hope govt. will approve it so the peoples of US can use some cryptos freely, thanks for sharing.

Thanks for this. It's a great step in the right direction. Bitcoin transactions should not be taxed otherwise the currency is useless for transacting. Let them tax bitcoin options and trading of bitcoin just like they do currency traders. I believe the limit should be less than $20,000 per transaction for bitcoin should not be required for capital gains reporting. Still its going to take time to get something passed even at these levels. But you are right, if our government moves in this direction China will have to quickly join the bitcoin revolution or be left holding a big bag of us dollars and their own communist controlled fiat!

Hay esperanza, gracias por la información

Finally, a law that actually helps people who have bitcoin!

All tax legislation, no matter how favorable it looks is just a gimmick to gain/maintain CONTROL.
People, don't be fooled by the apparent cooperation of politicians into this matter or any other, they only have one aim, or two in one, their personal gain and government's.

It's amazing how some people never wake up, when you hear/read the word TAX, is not to your benefit, not to the common citizen's advantage.
There is an old saying:

The wolf changes his coat but not his nature.

Keep that in mind!!

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This is an excellent law.

Thanks for the article. I am sure everyone is looking forward to some relief for smaller transactions, especially as more common vendors begin accepting Bitcoin as a form of payment for goods. 

 What would be great if this relief could be used on a transaction by transaction basis! I am unclear on the exact mechanics of the proposed law, as I have not dived into legislation in full force (so much ground to cover on existing law).

Foreign currency transactions have de minimis rules which are not as generous as a potential $600 (it's $200 gain relief for foreign currency). Although, I wonder, is it $600 of crypto gain excluded, or $600 dollar value of the transaction...makes a difference!

The tricky double edged sword that doesn't make the headlines, in the world of foreign currency, if an individual is exchanging USD for Euro for personal use, and actually has a loss instead of a gain at the end, it is possible the loss may not be deductible.  Something to watch out for in the future.

Great things are yet to come!

what about the people that are wondering if they can pay their mortgage or rent with crypto currencies...

This is crazy. Wait, aren't you in SA too? Because knowing Zuma, I don't see this happening hahaha! :D

Talk soon.

It would really spur a lot of small purchases and merchant acceptance.   That would be amazing and would remind me of the situation of letting the small online merchants not have to charge sales tax because of the burden of trying to collect for all these different states and local cities.

Have been thinking about this a lot since the Polish post that covered their tax situation.  Would be nice to have some clarity and simplicity so we(USA) don't get audited down the road and end up in trouble.

It's certainly a step-forward in the right direction and even with a $600 leeway will help benefit businesses and consumers a like. Hopefully over time, when the Government get more behind it, then that $600 figure will grow! 

@jrcornel you've done a great post here. Followed you. I'll be putting one together late on the latest news this week on China and how that impacts. Would appreciate  a follow so that you can keep up to date with it!

South Africa has been doing this all along under "Capital Gains Tax" @enazwahsdarb 

During about 2005 when doing imports/exports using banks to hedge the fund you had to make note of price on the day hedging took place, then take the spot rate, wait for the day the good arrived and calc the value. Keep a running balance of profit/loss made from hedging the money and declare it.

This is not a new law and GAAP rulings made this feature for audit purposes. 

A couple of years ago I had to laugh when a local proudly declared he had moved all his money into bitcoin, could leave the country without declaring. News for you I mentioned in a reply, you will have to do the calculation on date of purchase, current value and find the profit to declare in tax before leaving the country. Unless of course he was planning a quick run, not wise.

One sure thing in life is you will pay taxes, heck they even knock on your door when you dead, that is called government and law.

Nice article and thought provoking as to how blockchain, bitcoin and cryptocurrency will be handled going into the future @jrcornel

voted to you, thank you

Awesome!!!  As the Bitcoin gains more steam, which it will, more and more people will start using it. Already the major banks are all creating their own cryptocurrency. Looks like the know the blockchain is amazing in there getting in on it...

Seems like good legislation.

As long as it stays like this I think I would actually be fine with it.
But it opens up the door for more legislation in the future.

Every little bit helps.  I wish Gov would stay out of crypto but you know that wont happen!

don't get me wrong im all for this but... i love politician speak
Tax FAIRNESS act... what does it do? make it BETTER to use bitcoin by giving it an exemption cash and credit with usd doesnt have.

I hope they do change the law and soon.