Wall Street Group Urges IRS To Let People Spend Small Amounts Of Crypto Free Of Taxes
The mainstream adoption of digital assets has been one of the main goals that the crypto industry had in 2019. There have been a lot of moves made in this direction, and this remains a priority this year as well.
Besides, mass adoption, regulation is also essential in order to allow institutional investors to enter the crypto space in higher numbers.
Wall Street urges IRS to allow spending small crypto amounts without taxes
Daily Hodl reported that if you have a few dollars or a bit of BTC and you want to buy a cup of coffee, if you choose to pay in BTC, this can trigger a capital gains tax.
It’s been just revealed that crypto advocates and entrepreneurs from the New York-based nonprofit Wall Street Blockchain Alliance (WSBA) are joining more voices in the crypto space who are pushing to make crypto payments as simple and popular as credit card or cash.
It’s been revealed by the same pubcalition mentioned online that they have issued a letter to spend their BTC, LTC or BCH on small purchases and the solution involves dropping capital gains tax on such buys.
It’s important to acknowledge the fact that at the moment, the IRS classifies crypto as property – not currency.
The thing is that even the smallest purchases could trigger a capital gain – or loss. That is translated into paperwork and accounting.
No matter the size of the purchase, users have to fill out Form 8949 to report “sales and other dispositions of capital assets.”
The WSBA letter states the following:
“Given that the underlying purpose of many cryptoassets, ranging from traditionally decentralized options such as bitcoin to more centrally organized stablecoins, is to serve as an alternative currency option, the current accounting taxonomy, classification, and tax treatment seems inappropriate,” the letter begins, as quoted by the Daily Hodl.
The letter continues and says that “Classifying cryptoassets as property creates additional compliance and reporting requirements that seems to neither add value to the taxpayer nor merchants accepting cryptoassets as payment for goods or services.”
We recommend that you check out the entire information in the letter.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.