A member of the United States House of Representatives has put forward a bill that will ensure that the profit or loss on any exchange of virtual currencies of the same kind, is not recorded or recognised by law.
Currently, the Internal Revenue Code of 1986 is the standard for exchange of property and says the following:
“No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.”
However, the new bill recently presented, called the “Virtual Value Tax Fix Act of 2019”, pursues the modification of this code, to also allow for gains or losses of cryptocurrency be excluded as well.
“The exchange of virtual currency for virtual currency of like kind shall be treated in the same manner as the exchange of real property for real property of like kind.”
The bill was introduced on Thursday the 25th of July by Rep. Ted Budd an was passed on to the Committee on Ways and Means.
Bills regarding the trading and use of cryptocurrency, have been introduced to Congress on different occasions. Last month, Congressman Tom Emmer reintroduced a bill that excludes any enforcement on relevant taxpayers until such a time when the IRS delineates specific rules on the reporting of profits and losses with regard to any hard forked cryptocurrencies.
The bill was called the Safe Harbor for Taxpayers with Forked Assets bill.