To amend the Internal Revenue Code of 1986 to allow exclusion of gain or loss on like-kind exchanges of virtual currency.

I 116TH CONGRESS 1ST SESSION H. R. 3963 To amend the Internal Revenue Code of 1986 to allow exclusion of gain or loss on like-kind exchanges of virtual currency. IN THE HOUSE OF REPRESENTATIVES JULY 25, 2019 Mr. BUDD introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow exclu- sion of gain or loss on like-kind exchanges of virtual currency. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may cited as the ‘‘Virtual Value Tax Fix 4 Act of 2019’’. 5 SEC. 2. EXCLUSION FOR LIKE-KIND EXCHANGES OF VIR- 6 TUAL CURRENCY. 7 (a) IN GENERAL.—Section 1031 of the Internal Rev- 8 enue Code of 1986 is amended by adding at the end the 9 following new subsection: 10 VerDate Sep 11 2014 17:57 Aug 04, 2019 Jkt 034408 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3963.IH H3963 Pbinns on DSK79D2C42PROD with BILLS 2 •HR 3963 IH ‘‘(i) SPECIAL RULE FOR VIRTUAL CURRENCY.— 1 ‘‘(1) IN GENERAL.—For purposes of this sec- 2 tion, the exchange of virtual currency for virtual cur- 3 rency of like kind shall be treated in the same man- 4 ner as the exchange of real property for real prop- 5 erty of like kind. 6 ‘‘(2) TERMINATION.—Paragraph (1) shall not 7 apply with respect to any exchange completed after 8 December 31, 2024.’’. 9 (b) EFFECTIVE DATE.—The amendments made by 10 this section shall apply with respect to exchanges com- 11 pleted after the date of the enactment of this Act. 12 Æ VerDate Sep 11 2014 17:57 Aug 04, 2019 Jkt 034408 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H3963.IH H3963 Pbinns on DSK79D2C42PROD with BILLS