Key Takeaways
- A Senate vote could exempt bitcoin payments under $600 from tax reporting.
- Advocates urge public support for the amendment to the Build Back Better bill.
- Current law taxes all bitcoin transactions with capital gains, regardless of size.
An amendment to the Build Back Better (BBB) bill could soon eliminate taxes on small bitcoin transactions.
The proposal, set for a Senate vote as early as tonight or Monday, would exempt bitcoin payments under $600 from capital gains tax reporting requirements.
David Bailey, a prominent bitcoin advocate, urged supporters to act, stating:
Amendments to the BBB being voted on tonight or Monday. Bitcoin and crypto tax amendment will be amongst them. Email or call your senator and tell them to vote yes.
Push for practical bitcoin payments
Supporters believe that removing tax burdens for routine, low-value bitcoin purchases could help normalize its use for daily transactions.
Ben Pham, another industry commentator, summarized the goal:
Buying things under $600 with Bitcoin should be tax-free. Let’s make it happen!
Current U.S. law treats each bitcoin transaction as a taxable event if it results in a capital gain, regardless of the amount.
The proposed change would create a tax exemption threshold for payments below $600, aligning bitcoin’s tax treatment with that of small foreign currency transactions.
The outcome of the Senate vote on this amendment will determine whether Americans can use bitcoin for everyday purchases without triggering tax obligations on minor transactions.
