Following a bill presented by a bipartisan group of the United States House of Representatives,  investors who make crypto gains of $200 or less may be excluded from paying taxes.

The bill, named the Virtual Currency Tax Fairness Act, is an amendment to the Internal Revenue Service tax code, and was recently introduced by Suzan DelBene (WA-01) and David Schweikert (AZ-06). 

Crypto Tax Situation in the U.S.

At the moment, United States residents are expected to calculate and report any slight change in the value of their cryptos against the U.S. dollar, and report the difference to the IRS. 

It does not matter what the cryptocurrencies are used for, as long as it is used to make purchases or traded on exchanges, they must report the difference against the dollar, or risk facing tax evasion charges. 

Selected Reps Against the IRS 

Commenting on the IRS requirement, the bipartisan group said cryptocurrencies have evolved in recent times and more opportunities have been created to use the nascent asset class in real-life situations. 

The bipartisan group added that these stringent demands will make it near impossible to use the asset class for everyday activities, thus mitigating crypto growth. 

“Virtual currency is reshaping our everyday lives, and the United States needs to recognize this and work to treat these currencies fairly in our tax code,” Rep Schweikert said in the announcement. 

Kristin Smith, director of the Blockchain Association, noted that as crypto use in retail payments surges, Americans need to understand their tax obligations, adding that the proposed bill would relieve the burden for small crypto traders. 

“We’re proud to support the bill’s reintroduction in the 117th Congress,” Smith added.

Difficulty in Calculating Crypto Taxes

Calculating cryptocurrency taxes has been a major issue since the discussion of taxing cryptocurrency gains started. 

Crypto traders have complained about the difficulty in keeping track of all their crypto-related transactions. 

In a bid to relieve the stress on crypto traders, popular cryptocurrency exchange Coinbase launched an initiative dubbed Coinbase Tax Center, which would help its users to easily calculate their taxes. 

A Maryland-based man was recently charged for drugging his father’s tea with illicit substances, in a bid to access bitcoin worth $400,000.

Citing court records, the Washington Post reported today that the accused, named Liam Ghershony, 24, added benzodiazepine, a depressant, into his father’s tea, while lying to the victim that the substance was an energy booster. 

Moments after the victim, referred to as the older Ghershony, drank the tea, he collapsed, giving the accused unrestricted access to his cell phone. 

The report noted that Liam tapped through his father’s two-factor authentication (2FA) and transferred the $400,00 worth of bitcoin into his personal wallet.  

Upon stealing the funds, Liam proceeded to convert two-thirds of the stolen BTC to ethereum, as he feared that the falling price of the world’s largest cryptocurrency could see his father lose all his crypto gains. 

Aftermath of the Case

Trouble started when the accused could not contact his father the following day. Left with no other choice, he called his father’s friend to help check on his father. 

As all attempts to reach the victim failed, Liam’s father’s friend called 911 to report the incident and the authorities broke into the house and saw the victim lying on the floor. 

Investigations into the matter and help from the accused mother, Christine Prefontaine, led to the arrest of Liam and he was subsequently charged with first-degree murder. 

However, due to the intervention of Liam’s father and other family members, the charge was later reduced to a first-degree assault. 

“There was an intent to inflict serious bodily injury by the drugging, by causing him [the victim] to be unconscious. But for the grace of God, Mr. Ghershony is still with us,” Donna Fenton, Assistant State’s Attorney said.

Liam Introduced His Father to Crypto

According to the report, Liam was the one that introduced his father into cryptocurrency trading. Based on his effort, Liam’s dad made him a partner in the $100,000 cryptocurrency investment. 

Following the surge in crypto value, the duo cashed out part of their $350,000 profit after-tax and shared it.  

Unfortunately, Liam became engrossed with illicit substances and he started consuming a significant amount of benzodiazepines as well as cocaine. 

Liam’s addiction to drugs made him approach his father again to sell the remainder of their cryptocurrency holding. 

The victim’s refusal prompted Liam to drug his tea with benzodiazepines in order to access the 2FA setting on his cell phone. 

Rise of Crypto Theft

With cryptocurrencies becoming more valuable, people are taking stringent actions to lay their hands on the asset class. 

As reported yesterday, a YouTube streamer recently defrauded his fans to the tune of $500,000 in cryptocurrencies.