House Committee Approves Tax Bill Simplifying Small Crypto Transactions
The House Ways and Means Committee has approved legislation that would simplify tax rules for small cryptocurrency transactions. The bill, known as H.R. 10357, aims to eliminate a separate gain-or-loss calculation when crypto is used to pay qualifying fees of $10 or less.
Under current federal tax treatment, taxpayers may need to compare the value of their digital assets when acquired with its value when it was used for a transaction, even if the resulting gain or loss is just a few cents. The proposed legislation would remove this calculation for small transactions that meet certain conditions.
The bill separates network fees from transaction fees and sets a threshold of $10 for qualifying fees. A qualifying network fee is paid for validating or processing transfers on a blockchain, while a qualifying transaction fee includes brokerage, trading, and liquidity charges connected to buying or selling digital assets.