H. R. 11.
To amend the Internal Revenue Code of 1986 to exclude from gross income de minimus gains from certain sales or exchanges of virtual currency, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
Mr. SCHWEIKERT introduced the following bill; which was referred to the
115TH CONGRESS 1ST SESSION
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income de minimus gains from certain sales or exchanges of virtual currency, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. 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: 6201
SEC. 139G. GAIN FROM SALE OR EXCHANGE OF VIRTUAL CURRENCY.
(a) IN GENERAL.—Gross income shall not include gain from the sale or exchange of virtual currency for other than cash or cash equivalents
(b) LIMITATION.— (1) IN GENERAL.—The amount of gain excluded from gross income under subsection (a) with respect to a sale or exchange shall not exceed $600. ‘‘(2) AGGREGATION RULE.—For purposes of this subsection, all sales or exchanges which are part of the same transaction (or a series of related trans- actions) shall be treated as one sale or exchange.
(c) VIRTUAL CURRENCY.—For purposes of this sec- tion, the term ‘virtual currency’ means a digital represen- tation of value that is used as a medium of exchange and is not otherwise currency under section 988.
(d) INFLATION ADJUSTMENT.—In the case of any taxable year beginning in a calendar year after 2018, the dollar amount in subsection (b) shall be increased by an amount equal to
(1) such dollar amount, multiplied by
(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2017” for “calendar year 1992” in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50..
(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 sale 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, 2017.
