DISCUSSION: US Crypto Taxes Are a Nightmare. Could These Proposals Help?

Nobody likes taxes but for U.S.-based blockchain users things can be particularly awful. This week we discuss U.S. tax treatment of "virtual currencies" and how scams find a home wherever opportunity exists, at least for a while.

AccessTimeIconFeb 9, 2020 at 4:00 p.m. UTC
Updated Aug 19, 2021 at 12:42 a.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The best Sundays are for long reads and deep conversations. Earlier this week, the Let's Talk Bitcoin! Show gathered to discuss the U.S. tax treatment of "virtual currencies" and how scams find a home wherever opportunity exists, at least for a while.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • This episode of Let's Talk Bitcoin! is sponsored by Brave.comeToro.com and Purse.io.

    During our first segment, we'll discuss:

    Virtual Currency Tax Fairness Act of 2020: The proposed legislation would exempt capital gains taxes if any individual transaction results in a capital gain of $200 or less.  Previous versions of the bill proposed a $600 cap. If passed, it would take effect in the 2020 tax year. Link -  H.R. 5635

    The IRS has a question for you: Tax filers in the U.S. are being asked if At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency? Link -IRS Form 1040

    Yang proposes "Digital Asset Regulation": U.S. Democratic presidential candidate Andrew Yang wants to clarify the tax implications of owning, selling and trading digital assets. Yang says clear policy will allow businesses to invest and innovate in the area without fear of a regulatory shift. Link - Yang 2020

    Later on, we'll dig into the "why" of scams as we begin a longer conversation on the topic.

    Three main points on scams:

    • Ponzi schemes thrive in disrupted spaces with uncertainty, poor credentialing and poorly understood complexity
    • The crypto currency space has these attributes
    • The underlying appeal of ponzi scams (and bitcoin) comes from the mythology of redemption, getting something from nothing, the genie in the bottle, etc.

    Links:

    This episode of Let's Talk Bitcoin! is sponsored by Brave.comeToro.com and Purse.io.

    Photo by Fernando Venzano on Unsplash

    This episode was produced by AP's Don and Ned. It featured discussion by Adam B. Levine, Stephanie Murphy, and Jonathan Mohan.

    Music for today's episode was provided by Jared Rubens, From Ether and Gurty Beats, with editing by Jonas. 

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.