- Marvin Ammori, the General Council member for Protocol Labs, called doing crypto taxes the “worst nightmare.”
- The citizen will have to keep track of the exact time of payment, and the amount paid.
- Ammori does suggest that the Virtual Currency Tax Fairness Act is a proposed solution to this exact problem that he hopes the public will support.
During a United States congressional meeting on the advantages of blockchain technology for small businesses, Marvin Ammori, the General Council member for Protocol Labs, called doing crypto taxes the “worst nightmare.”
The meeting that took place was named “Building Blocks of the Challenge: The Benefits of Blockchain Technology for Small Businesses,” where the members had discussions of the potential for blockchain integrations in the lower-scale business workplace.
Ammori was asked whether blockchain technology is ready for mass adoption, to which he responded, stating that undesirable difficulty would come with taxation on cryptocurrencies. He believes that the tax rules will be very complicated for cryptocurrencies, giving an example of why he thinks so.
He says that to pay the right amount of taxes for cryptocurrencies (which are known to be highly volatile when it comes to prices). The citizen will have to keep track of the exact time of payment, and the amount paid, and then figure out the value of the cryptocurrency at that point of time and then pay the required percentage of taxes.
This is a highly complicated process for a single transaction alone, let alone the numerous transactions that the average citizen carries out per day. Ammori does suggest that the Virtual Currency Tax Fairness Act is a proposed solution to this exact problem that he hopes the public will support.
This act is a de minimis tax exemption act that is defined by the IRS as “an amount less than a quarter percent of the par value multiplied. By the number of complete years between the purchase date of the bond and its maturity date – is too small to be a market discount for income tax purposes.”
Ammori also brought up the need for further guidelines and clarifications from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission on the matter. This opinion was also equally echoed with some other members of the panel at the meeting.
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