Virtual Currency Tax Fairness Act of 2020

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5635 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 5635

To amend the Internal Revenue Code of 1986 to exclude from gross income 
  gain from disposition of virtual currency in a personal transaction.


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                    IN THE HOUSE OF REPRESENTATIVES

                            January 16, 2020

  Ms. DelBene (for herself, Mr. Schweikert, Mr. Soto, and Mr. Emmer) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
  gain from disposition of virtual currency in a personal transaction.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Virtual Currency Tax Fairness Act of 
2020''.

SEC. 2. VIRTUAL CURRENCY.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139F the following new section:

``SEC. 139G. GAIN FROM DISPOSITION OF VIRTUAL CURRENCY.

    ``(a) In General.--Gross income of an individual shall not include 
gain, by reason of changes in exchange rates, from the disposition of 
virtual currency in a personal transaction (as such term is defined in 
section 988(e)). The preceding sentence shall not apply if the gain 
which would otherwise be recognized on the transaction exceeds $200.
    ``(b) Virtual Currency.--For purposes of this section, the term 
`virtual currency' means a digital representation of value that is used 
as a medium of exchange and is not otherwise currency under section 
988.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139F the following new item:

``Sec. 139G. Gain from disposition of virtual currency.''.
    (c) Reporting of Gains or Losses.--The Secretary shall issue 
regulations providing for information returns on virtual currency 
transactions for which gain or loss is recognized.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to transactions entered into after December 31, 
2019.
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