Could Cryptocurrencies Stop Paying Capital Gain Taxes? A New Bill Gives Hope To The Community
Could Cryptocurrencies Stop Paying Capital Gain Taxes? A New Bill Gives Hope To the Community
A new bill introduced in the US Congress proposes to eliminate capital gain taxes on gold and silver bullion. Although it does not apply to virtual currencies, this brings hope that in the future, cryptocurrencies would not have to pay capital gain taxes.
Representative Alex Mooney introduced back on September 12, the bill titled ‘Monetary metals Tax Neutrality Act of 2018.’ The main intention is to amend the IRS code and exempt the sale of these minerals from capital gains taxes when they are sold.
It is important to mention that it would end capital gains taxes on gold and silver but investors would no longer be able to claim losses on their taxes.
On the matter, Mooney commented:
“If they’re indeed US money, it seems there should be no taxes on them at all. So, why are we taxing these coins as collectibles?”
At the time of writing, the U.S. Securities and Exchange Commission (SEC) and other regulatory agencies did not provide a clear answer about how they consider virtual currencies. Nevertheless, the Commodity Futures Trading Commission (CFTC) considered Bitcoin as a commodity.
Virtual currencies are not considered money to not be taxed. Indeed, the SEC has already said that other virtual currencies such as ICO tokens are securities rather than commodities or coins.
Although there have been some comments related to virtual currencies, there is not a clear answer about how the country considers these digital assets. If they end up being considered money, they might also be exempted from capital gains taxes.
Ron Paul has also supported this movement saying that money is key to shrink the size and scope of the government. Mr. Ron Paul explained that people who want a big government they do not want sound money, instead they want a monopoly and to print money.