Virtual Currency Tax Fairness Act

The Virtual Currency Tax Fairness Act exempts small transactions involving virtual currency from federal income tax. It directly affects individuals who buy, sell, or trade digital assets like cryptocurrencies. The bill creates a de minimis rule that excludes gains or losses under $200 from taxable income, provided the transaction does not involve cash or business/investment property. Transactions are aggregated, meaning multiple related sales count as one for the $200 threshold. The $200 limit will be adjusted for inflation starting in 2028, and the law applies to transactions occurring after December 31, 2026.