,,ii  #aagth ,,congress  #b;d ,session  
,s4 #dfjh  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bf1     
#bjbb,mr4 ,toomey introduced the        
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to exclude from 
gross income de minimis gains from      
certain sales or exchanges of virtual   
currency1 and for other purposes4  #a4  
,short title ,this ,act may be cited as 
the ,virtual ,currency ,tax ,fairness   
,act4  #b4 ,virtual currency  7a7 ,in   
general ,part ,,iii of subchapter ,b of 
chapter #a of the ,internal ,revenue    
,code of #aihf is amended by inserting  
after section #aci;,i the following new 
section3  #aci;,j4 ,de minimis gain from
 sale or exchange of virtual currency   
7a7 ,in general ,subject to subsection  
7b71 gross income shall not include gain
 from the sale or exchange of virtual   
currency1 unless the sale or exchange is
 for-- 7#a7 cash or cash equivalents1   

7#b7 any property used by the taxpayer  
in the active conduct of a trade or     
business1 or  7#c7 any property held by 
the taxpayer for the production of      
income 7as described in section         
#bab7b774  7b7 ,limitation  7#a7 ,in    
general ,subsection 7a7 shall not apply 
in the case of any sale or exchange for 
which-- 7,a7 the total value of such    
sale or exchange exceeds #ej1 or  7,b7  
the total gain which would otherwise be 
recognized with respect to such sale or 
exchange exceeds #ej4  7#b7 ,aggregation
 rule ,for purposes of this subsection1 
all sales or exchanges which are part of
 the same transaction 7or a series of   
related transactions7 shall be treated  
as one sale or exchange4  7c7 ,virtual  
currency ,for purposes of this section1 
the term virtual currency means a       
digital representation of value which-- 
7#a7 functions as a unit of account1 a  
store of value1 or a medium of exchange1
 and  7#b7 is not a representation of   
the ,united ,states dollar or any       

foreign currency4  7d7 ,inflation       
adjustment ,in the case of any taxable  
year beginning in a calendar year after 
#bjbc1 the dollar amount in subsection  
7b77#a7 shall be increased by an amount 
equal to-- 7#a7 such dollar amount1     
multiplied by  7#b7 the cost-of-living  
adjustment determined under section     
#a7;f77#c7 for the calendar year in     
which the taxable year begins1          
determined by substituting calendar year
 #bjbb for calendar year #bjaf in       
subparagraph 7,a77ii7 thereof4  ,any    
increase determined under the preceding 
sentence shall be rounded to the nearest
 multiple of #aj4  4  7b7 ,clerical     
amendment ,the table of sections for    
part ,,iii of subchapter ,b of chapter  
#a of the ,internal ,revenue ,code of   
#aihf is amended by inserting after the 
item relating to section #aci;,i the    
following new item3  ,sec4 #aci;,j4 ,de 
minimis gain from sale or exchange of   
virtual currency4  4  7c7 ,effective    
date ,the amendments made by this       

section shall apply with respect to     
transactions entered into after         
,december #ca1 #bjbb4