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Georgia Becomes the Latest US State to Legalize Cryptocurrency in Paying Taxes

3 months ago 864 views

More US states are getting onboard with cryptocurrency as a legal tender.

The US state of Georgia might soon start accepting cryptocurrency into government machinery, like while paying taxes or for licenses. Recently, a bill (titled Senate Bill 464) was introduced in the assembly by Republican state senators Michael Williams and Joshua McKoon. The bill proposes that cryptocurrency as a valid payment for both taxes and licenses. Bitcoin was mentioned in the bill, but more cryptocurrencies could be included as long as they used the electronic peer-to-peer system. The bill also proposes that the coins received must be converted into US dollars within a time frame of 24hours.

It is interesting to note that a similar bill was recently introduced in the state of Arizona that allowed cryptocurrencies like Bitcoin, LiteCoin, and others to be valid while paying for income taxes. The clause for "electronic peer-to-over system" and "conversion into US dollars within 24 hours" was also present in the bill. In fact, the bill already passed the third reading (though by a narrow margin). If all things went well, Arizona would soon become one of the pioneer states of cryptocurrency in the USA.

Something different but equally important occurred in Wyoming recently, where a legislation declassified cryptocurrency from taxable properties. Since 2014, cryptocurrency was under the federal classification as a taxable property like land and luxury items. However, they now fall under the list of "intangible items" that also include gold and cashier's checks, among other things.

Many people are taking these recent moves in their stride and feeling happy that the government is finally legalizing cryptocurrency instead of banning them. It is a cause of celebration because the outlook of both US government and US banks had been pessimistic about cryptocurrency for a long time.

However, some are skeptical. Robert Wood, who is a tax law expert by profession, said that using cryptocurrency as a payment for taxes might lead to paying more taxes, as the gains made in these coins could themselves be taxable. However, for the most part, it is largely good news for crypto traders and enthusiasts alike.