New Bill Introduced on Tax Status of Virtual Currencies from Property to Currency

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New Bill Introduced on Tax Status of Virtual Currencies from Property to Currency
New Bill Introduced on Tax Status of Virtual Currencies from Property to Currency

New Bill Introduced on Tax Status of Virtual Currencies from Property to Currency

Congressman Steve Stockman of the 36th District of Texas is embracing digital currency and to help the revolutionary invention, he is trying to get a bill passed that will change the tax status of virtual currencies from property to currency. He brought a copy of a bill he’s planning to introduce to the 113th Congress (second session) on the topic of virtual currencies as well.

Steve Stockman, an American politician and member of the Republican Party made himself known in the Bitcoin community at the end of last year when he began accepting Bitcoin donations for a Senate campaign. Earlier, talking at Inside Bitcoins NYC he announced that he plans to introduce the first piece of US legislation on virtual currencies.

Called ‘The Virtual Currency Tax Reform Act’ it would authorize the Internal Revenue Service to treat virtual currencies as currency for federal tax purposes. The senator believes that the bill seeks to change how the Internal Revenue Service and other authoritative agencies in the United States views virtual currencies.

Earlier the IRS put Bitcoin and other digital currencies into the category of property and not in currency. However, the bill says that the Classification of virtual currencies as property means that users would be required to pay capital gains tax on any transaction using the virtual currency based on any gain over the virtual currency’s value from the time of purchase.

The guidelines issued by the IRS to tax Bitcoin and other virtual currencies considering them property are rather problematic primarily because by the rules, users would have to keep track of all of their transactions and calculate gains/losses at the end of the year. The effort on the part of Steve Stockman is to ask the government to reconsider its decision.

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Steve Stockman is a Fervent Supporter of Bitcoin

Steve Stockman is receiving support and accolades from the Bitcoin community. Praising his efforts, Nick Spanos, NYC Bitcoin Center founder said that his organization salutes Congressman Stockman for making good on his promise to support digital currencies like Bitcoin.

Nick Spanos praised Steve Stockman and said that he displayed an interest in Bitcoin’s path-breaking, job-creating technology early on and on behalf of the entire digital currency community who have a stake in this nascent industry’s growth and its normalization into the economy; Bitcoin Center NYC thanks Congressman Stockman.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com