The Less Tax Paperwork for Digital Asset Owners Act simplifies tax reporting and accounting requirements for cryptocurrency and digital asset owners. The bill creates a new exemption allowing taxpayers to ignore capital gains on digital assets used to pay small blockchain network fees (up to $10), introduces a simplified accounting method for widely traded digital assets starting in 2028 that lets taxpayers calculate gains and losses at the portfolio level rather than tracking individual transactions, and reduces broker reporting requirements by exempting U.S. dollar stablecoins and allowing aggregate reporting for simplified accounting methods. These changes apply to most individual cryptocurrency owners and businesses holding digital assets, though professional traders and high-volume traders are excluded from the benefits. The provisions take effect in 2027 and 2028, and the bill establishes clear tax definitions for various types of digital assets and grants the Treasury Secretary authority to adjust rules as cryptocurrency markets evolve.
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