This bill extends federal tax rules to digital assets while establishing safeguards for charitable donations and studying tax relief options for small transactions. Section 5 applies the IRS "wash sale" rules to digital assets, preventing taxpayers from claiming losses on digital asset sales if they repurchase substantially identical assets within 30 days, effective immediately upon enactment. Section 9 modifies charitable donation rules by exempting actively traded digital assets from appraisal requirements but requiring detailed written acknowledgments for less frequently traded digital assets valued over $500, and establishes penalties for charities that provide false documentation. Section 12 directs the Treasury Department to study within one year whether small digital asset transactions should receive tax relief and to issue guidance within 180 days identifying which transactions may already qualify for relief under existing law, without creating new exemptions or requiring additional IRS resources. Overall, the bill brings digital assets more in line with traditional securities tax treatment while addressing compliance and charitable giving issues.
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