Colorado USA will start accepting cryptocurrency tax payments this summer

Colorado Gov. Jared Schutz Polis said the U.S. state will start accepting cryptocurrency payments starting this summer.

Colorado USA will start accepting cryptocurrency tax payments

In an interview with CNBC on Tuesday, Colorado Gov. Jared Polis announced that the state will begin accepting cryptocurrencies for state taxes starting this summer.

“We anticipate accepting cryptocurrency for all government tax purposes fairly soon this summer,” Polis confirmed, adding that an intermediary will convert the payments into U.S. dollars.

Polis also said Colorado is considering allowing state residents to use cryptocurrency to pay for additional services, such as driver’s licenses.

The Colorado governor has long been a crypto advocate. In 2014, he became the first US politician to accept bitcoin donations for his campaign.

Colorado isn’t the first US state to consider using cryptocurrencies to pay state taxes. In 2018, Ohio allowed companies to file state corporate income taxes through a website specifically focused on cryptocurrencies. However, the program ended in 2019 after just 10 companies used it to file their taxes.

Wyoming and Arizona are also looking to pass similar crypto tax laws. A proposed law in Arizona seeks to amend state law to include bitcoin as the legal currency for paying “debts, levies, taxes and fees.” Another bill yet to be submitted to the Wyoming legislature proposes accepting any cryptocurrency for a “sales and use tax” instead of an income tax.

Colorado’s approach is different in that it allows taxpayers to use cryptocurrencies for all state taxes.

Notably, the state proposals differ from federal regulations on crypto taxation. The Internal Revenue Service designates cryptocurrencies as property, which means that if an individual chooses to pay their state taxes in crypto, the conversion to dollars is subject to capital gains tax.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Colorado USA will start accepting cryptocurrency tax payments this summer

Colorado Gov. Jared Schutz Polis said the U.S. state will start accepting cryptocurrency payments starting this summer.

Colorado USA will start accepting cryptocurrency tax payments

In an interview with CNBC on Tuesday, Colorado Gov. Jared Polis announced that the state will begin accepting cryptocurrencies for state taxes starting this summer.

“We anticipate accepting cryptocurrency for all government tax purposes fairly soon this summer,” Polis confirmed, adding that an intermediary will convert the payments into U.S. dollars.

Polis also said Colorado is considering allowing state residents to use cryptocurrency to pay for additional services, such as driver’s licenses.

The Colorado governor has long been a crypto advocate. In 2014, he became the first US politician to accept bitcoin donations for his campaign.

Colorado isn’t the first US state to consider using cryptocurrencies to pay state taxes. In 2018, Ohio allowed companies to file state corporate income taxes through a website specifically focused on cryptocurrencies. However, the program ended in 2019 after just 10 companies used it to file their taxes.

Wyoming and Arizona are also looking to pass similar crypto tax laws. A proposed law in Arizona seeks to amend state law to include bitcoin as the legal currency for paying “debts, levies, taxes and fees.” Another bill yet to be submitted to the Wyoming legislature proposes accepting any cryptocurrency for a “sales and use tax” instead of an income tax.

Colorado’s approach is different in that it allows taxpayers to use cryptocurrencies for all state taxes.

Notably, the state proposals differ from federal regulations on crypto taxation. The Internal Revenue Service designates cryptocurrencies as property, which means that if an individual chooses to pay their state taxes in crypto, the conversion to dollars is subject to capital gains tax.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Visited 2 times, 1 visit(s) today