New Taxation Proposal can Boost Cryptocurrency Merchant Adoption
Most personal transactions where a capital gain occurs are subject to taxation. A newly proposed bill in the US House of Representatives could change things up a bit in this regard.
Do not expect the taxable gain to be eradicated completely, however.
Changing Crypto Taxation for the Better
This peculiar proposal aims to take a slightly different approach to capital gains taxes.
Any personal transactions with a profit of under $200 would no longer be taxable.
That would be rather significant if approved.
Nearly 90% of personal transactions have a profit of under $200, except for speculative dealings.
Although this new proposal is certainly exciting, it still needs to go through the proper motions first and foremost.
That said, it can certainly have applications to cryptocurrency trading as well.
As cryptocurrencies are currently deemed property, the capital gains taxation needs to be reported properly.
If those gains were below $200, the proposal would nullify those taxes completely.
As far as trading is concerned, it will not alleviate anything regarding taxable events.
This will apply only to personal transactions, including nullifying price changes of a cryptocurrency asset used to buy goods or services.
For vendors and merchants, this proposal can make a world of difference.
Especially those dealing with small margin profits might become more eager to adopt cryptocurrency transactions.
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JP Buntinx, Khareem Sudlow