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Bipartisan US House members draft crypto tax bill, involving tax exemption for stablecoins and deferred taxation on staking rewards
Summary: According to The Block, Representatives Max Miller (Republican from Ohio) and Steven Horsford (Democrat from Nevada) are drafting a crypto tax bill called the Digital Asset PARITY Act. The bill will provide tax exemptions for certain stablecoin transactions and delay taxation on rewards from validating blockchain transactions. It will exempt capital gains tax on stablecoin ...
According to The Block, Representatives Max Miller (Republican from Ohio) and Steven Horsford (Democrat from Nevada) are drafting a crypto tax bill called the Digital Asset PARITY Act.
The bill will provide tax exemptions for certain stablecoin transactions and delay taxation on rewards from validating blockchain transactions. It will exempt capital gains tax on stablecoin transactions below $200. As a compromise between current IRS guidance and industry demands, taxpayers can choose to defer taxes on staking and mining rewards for five years, after which they will be taxed as ordinary income based on fair market value. The bill extends wash sale rules to digital assets to prevent investors from selling at a loss and immediately repurchasing to claim tax deductions, and allows traders to use mark-to-market accounting.
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Link: Bipartisan US House members draft crypto tax bill, involving tax exemption for stablecoins and deferred taxation on staking rewards [Copy]
