Income Gain On Transactions Using Virtual Currency

For income tax years commencing on or after January 1, 2020, the bill allows an individual taxpayer or a corporation to claim a state income tax deduction on gains, to the extent included in federal taxable income, from the sale or exchange of virtual currency for other than cash or cash equivalents, up to $600 per sale or exchange. All sales or exchanges that are part of the same transaction or a series of related transactions are required to be treated as one sale or exchange.

The executive director of the department of revenue is required to promulgate rules regarding the receipt of documentation related to virtual currency transactions for which gain or loss is recognized.

(Note: This summary applies to this bill as introduced.)