Virtual Currency Tax Fairness Act

Lower taxes on small crypto sales

This bill would let you exclude from gross income small gains or losses from selling or exchanging virtual currency. The exclusion would apply only when the total sale value and the total gain or loss are $200 or less. It would not apply if you received cash or cash equivalents. It also would not apply if you received property used in an active business or property held to produce income. All related sales or exchanges would be added together and treated as one sale for the $200 tests. Virtual currency would mean a digital representation of value that acts as a unit of account, store of value, or medium of exchange. It would not include a representation of the U.S. dollar or any foreign currency. For taxable years beginning after 2027, the $200 amounts would be increased by the cost-of-living adjustment in section 1(f)(3) with calendar year 2026 substituted, and any increase would be rounded to the nearest $10. These rules would apply to transactions entered into after December 31, 2026.