A bill to amend the Internal Revenue Code of 1986 to exclude from gross income de minimis gains or losses from certain sales or exchanges of virtual currency, and for other purposes.

Bill 118 s 4808, also known as the Virtual Currency Tax Fairness Act, aims to make changes to the Internal Revenue Code of 1986 regarding the taxation of virtual currency transactions. The bill proposes to exclude de minimis gains or losses from certain sales or exchanges of virtual currency from being included in an individual's gross income.

This means that individuals who engage in small transactions involving virtual currency, such as Bitcoin or Ethereum, would not have to report these transactions as taxable income. The bill seeks to provide clarity and fairness in the taxation of virtual currency transactions, recognizing the growing popularity and use of these digital assets.

In addition to excluding de minimis gains or losses from virtual currency transactions, the bill also includes provisions for other purposes related to virtual currency taxation. Overall, the Virtual Currency Tax Fairness Act aims to update the tax code to better reflect the evolving nature of digital currencies and provide relief for individuals engaging in small-scale transactions involving virtual currency.