A tax bill introduced in Wyoming state senate two days ago proposes to exempt cryptos form taxing. The bill was received favorably and, surprisingly, passed with 26 (for) / 3 (against) / 1 (excused).
Here's the relevant part form the bill:
The following shall be exempt from property taxation:
(vi) Any of the following intangible items:
- (A) Money and cash on hand including currency, gold, silver and other coin, bank drafts, certified checks, and cashier's checks; and virtual currencies. As used in this subparagraph, "virtual currency" means any type of digital representation of value
that:- (I) Is used as a medium of exchange, unit of account or store of value; and
- (II) Is not recognized as legal tender by the United States government.
I don't know how many people hold cryptocurrencies in Wyoming and I don't think this is necessary important now. What's important, though, it's the signal that this bill sends: "we won't tax cryptos".
It will be interesting to follow up during next months and see how many blockchain startups and exchanges will migrate to Wyoming.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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I guess all Crypto holders now have the option to migrate to Wyoming to avoid Crypto taxes, if they are feeling the pinch in their respective countries... Good initiative!
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I was tracking coverage of the Wyoming Blockchain Coalition over the past few months (including here) and while it's exciting to see that less taxes will be implemented on crypto, it doesn't stop the Federal government from taxing crypto. The federal level tends to be where heavy taxation is here in the states. In this case, Wyoming is not (to my knowledge) a particularly heavy state tax state to begin with. When I used to live in Texas, there were no income taxes from the state level and almost all withdrawals from paychecks came from the feds. Businesses also had veryyy beneficial tax breaks in Texas. (And with regard to Federal taxes, there is a new federal tax bill being put into place for 2018, but I'm not sure how much of a difference it will make on the whole for crypto. )
Anyway, it's still exciting to see how cryptocurrency is treated by various governments from a tax perspective, and as you stated, maybe crypto companies will migrate their HQ's to Wyoming. (Whether they physically locate there or not is another story -- hilariously enough, Facebook is technically operated out of Delaware because of the beneficial taxes, but its HQ is obviously in the Bay Area here in California. Hah.) Crypto taxation will clearly be an evolving field in the coming years and I'm sure tax lawyers and accountants will have to scramble to keep up!
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Hey are you in Texas? A great state and you are right no State tax. It needs to start at the state level.
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Hey @rebeccabe! No, I am not in texas anymore; I am now in California, but i lived in texas for about six years
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California girl..well I am not in Texas ..nebraska for the last few years of all places
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Maybe trying to diversify their economy right? It's a precarious position to be a in a resource type economy that depends on natural resources (coal). You might like this article I read recently why people are moving to Idaho and fleeing Wyoming https://www.denverpost.com/2017/12/26/idaho-wyoming-population-growth-economy/
I really liked your well written comment!
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Thank you, @antimetica!! Yeah, spammers are not my fave and if Im gonna write a comment, I do my best to be thoughtful if I can (I imagine you are the same :]). In real life, though? Im not thoughtful at all :-P XD
Awesome article share, too. I think it is fascinating that wyoming has a pretty high cost of living... not sure that people transferring their bitcoins to Wyoming-based holding companies will make much of a difference to that uncomfortable life reality in the state!!
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I would be very surprised if this was the trend going forward. There is the old saying, "the only certainties in life are death and taxes."
If there is money being made the government is going to take a cut from it and unfortunately the usually do one way or the other. I would love if this wasnt true but i can see crypto being put into similar catagories as stocks for taxation.
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Apart from cryptos such as ripple, which is someway centralized, I believe every other Crypto should be fully decentralized...The idea of regulation and taxing sucks pretty much. The transaction fee that we pay is enough tax... :)
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For those who still insist on taxing crypto holders, I wonder how they intend to do that. How do they regulate or moderate crypto wallets when it is not like a national central bank.
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At last... looks like my new domain is Wyoming...I love it there.
I registered my truck there and while traveling across country used it as my residence by getting a mail box there.
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No doubt! Its like california with weed. Itll be like a wyoming gold rush. This will be great for entrepreneurs who are looking to do something awesome with their gains without losing half. Should be awesome! Hope this goes well federally too. One day itll be commonplace because of small movements like this. Cryptorevolution is upon us!
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Thats good news, might have a domino effect and bring about favorable votes in other states. Thanks for the update
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oh damm that's a fantastic news update
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No tax for crypto? but what about the banks? do they accept payments from Crypto?
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Looks like both Arizona and Wyoming are leading the charge on state laws about crypto! and its positive laws! Maybe they are looking for crypto investors? like the guys talking about making Puerto Rico a crypto currency utopia? "Puertopia" lol.
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Let's move to Wyoming , i do not understand why stats or countries need to get any tax about crypto
Let people have it and do whatever they want with it , the government getting enough money from our tax
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This is good news to all crypto gods. Exemption from tax is what we pray should hold.
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The Wyoming tax bill introduced to exempt certain property goods will promote tax avoidance, which is TOTALLY LEGAL - and, in fact, is good news! However, it all boils down to interpretation of the bill's provisions. Moreover, the IRS has hinted on the taxation of cryptos under the Capital Gains Regime. Although, considering the insufficient guidelines set out by the IRS with respect to cryprotaxation, I see loopholes being created and 'smart' crypto investors using the law to their advantage.
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So, crypto or virtual currencies not taxed as property as long as the U.S. government doesn't recognize it as legal tender. So, as long as the U.S. doesn't adopt STEEM as currency, Wyoming won't tax it as property. Kind of an odd combination (not taxing it as property as long as it's not legal tender) but hey, the no tax part is good, right? :)
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Here we go, a patchwork system, the kind America loves ... Well I guess with any decentralized system, the idea is diversity in applications and local uses, potentially implying taxes as well
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So many people buy cryptos using the money they have paid taxes on. If they are earning profit on them then they should not be taxed, since they have purchased it from their savings.
Specially the small investors should be left alone. I am ok with the government taxing those who have invested more than $50000 in it. But below that i think it is a harrasment.
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Very good post Meanwhile In Wyoming: We Don't Want To Tax Crypto
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Thanks a lot for informing us love that you are always on top of news all around the world.
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Thanks for your valuable and Didactive post.
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By dint of we can increase our skill that is beneficial for all steemians.
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How is it in the US? Here there's no tax on crypto as long as it stays in crypto-world - the problem occurs only when you want to trade it for fiat. So for instance if more web shops accepted bitcoin I could use my crypto - without any tax-deduction - there.
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Well that's good news for the crypto holders along America they got a free state. Hope they also lower some electricity rates too so it benifit to some of the miners too.😊
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This is great to see. I wonder how governments will tax crypto once people can start slaiming they gifted it to other people. I read in the news earlier today that one of the big politicians who wanted regulation in Korea was found dead in his apartment. Don't know the cause, by my oh my...
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In my opinion this can have two readings; one, that the politicians begin to give the right weight to the crypto currency that allow to put in the hands of the people their transactions and two, that the crypto market is strengthening so much that already the politicians are already submerged in this market.
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Yup sure we don't want cryto market to get taxed or any kind of government involvement because it would totally remove the ajenda for which it was made ie if will become centralised!!
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I have been following and posting on this as well... but the really good news is that Arizona and Colorado are also taking more action in this direction as well. I think it is the beginning of a nationwide process (I heard Hawaii is even making their own coin).
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The "WORKAHOLIC-WITNESS" keep sweeping me off my feet with mind blowing information as this...
Keep doing the good work!
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Lol @samueloption, Is that what we call @dragosroua? Workaholic witness? Sounds about right 😂
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@vron, what better adjective can one use to qualify a man who works round the clock for the community?
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"we won't tax cryptos" daca stai sa te gandesti , monedele virtuale atata timp cat nu sunt reglementate nu au cum sa ceara taxe pentru ele , ar fi o mare prostie. daca oamenii isi pierd monedele virtuale statul nu se baga , asa ar trebui sa fie si in legatura cu taxarea lor/
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I think that the whole idea of cryptocurrencies and being descentralized would lost all sense if a tax policy is approved.
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I am new in crypto world, you have a useful post for newsbies at the end of your post and now I read it ;)
Have a great day, Dragos!
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Wow how poles apart regulatory response is on crypto!! I just shared a Zap with news of police hunting down Bitcoin traders in Bangladesh. How bizarre is that?
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excellent post........thanks for sharing.......a news......i like this post............
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This is a good news to crypto traders and holders at Wyoming, though am sure this bill will be reviewed with time as the number of cryptography traders and holders in the state skyrockets.
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I think it’s about time I move ... some states are just really greedy and want in for everything
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Hello.Your post pleased me, so to hold.I wish success and successes to you.Good day :)
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There have to be limits to taxes, but then people just shift to whatever incurs the least taxes. Generally its been the rich who can afford the accountants to do this. Cryptocurrency can be like cash, but much of it is traceable. This is going to get discussed a lot in the next few years
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