The Digital Asset Tax Certainty Act clears a key House committee, offering tax relief for small Bitcoin transactions while restricting the use of wash-sale strategies for crypto investors.
The bill introduces a de minimis exemption for small transaction fees and extends wash-sale rules to Bitcoin, creating both a minor tax simplification and a loss-harvesting restriction.
The House Ways and Means Committee has advanced the Digital Asset Tax Certainty Act, a bipartisan bill aimed at clarifying crypto tax rules. The legislation introduces a de minimis exemption for small transaction fees while simultaneously extending wash-sale rules to Bitcoin, effectively closing a common loss-harvesting loophole for digital asset investors.
The bill provides a tax break by exempting small transaction fees from capital-gains calculations, but it also restricts tax-loss harvesting by applying wash-sale rules to digital assets.