Colorado To Accept Crypto For Tax Payments
Colorado will accept cryptocurrency for tax payments starting from this Summer. Reports have it that Colorado crypto holders will no longer be limited to making tax payments in fiat but would have the opportunity to also make payments in cryptocurrency conveniently.
While speaking to CNBC, Governor of Colorado Jared Schutz Polis confirmed that residents will be able to pay taxes in BTC. According to Polis, the state will use an intermediary to exchange it for U.S. dollars.
Colorado Exploring Other Use Cases of Cryptos
Polis also stated that the state was looking into the possibility of letting its residents pay for extra services like driver’s licenses in digital assets. Remember that in 2014, Polis became the first U.S. politician to accept BTC donations for his gubernatorial campaign.
Since then, the governor whose tenure will soon be over has been striving to make Colorado a crypto-friendly state, different from New York. Polis has been a crypto advocate for a long time, and the crypto tax payments might be the beginning of greater things to come to the delight of crypto users.
Colorado isn’t the first state to consider allowing its residents to file taxes in virtual currencies. Ohio took a similar approach in 2018. The state gave companies the go-ahead to pay state and corporate taxes in digital assets via an approved crypto site.
The program went well until 2019 when it was shut down. Only about ten companies used the approved crypto website to file their taxes.
Wyoming and Arizona Considers Passing Crypto Tax Laws
Colorado might not be the only U.S. state to pass a crypto tax law. Wyoming is looking forward to implementing a similar tax payment bill. Arizona is also making similar plans to include crypto tax payments.
According to news outlets, Arizona has reportedly sent a proposed bill to the House, asking to amend the state law to incorporate bitcoin as a medium of payment for debts and taxes. The bill also seeks to allow residents to pay their dues and public charges in the flagship crypto.
Wyoming is also proposing presenting its bill to the legislature, stating that cryptocurrency should be accepted specifically for sales and use taxes instead of income taxes. Colorado, on the other hand, will let taxpayers make payments for all state taxes in digital assets. While Polis disclosed this on CNBC, there’s yet to be an official document regarding the move.
State rules on crypto tax payments differ from federal crypto tax laws. The IRS tag virtual currencies as property. So, if a taxpayer decides to pay their taxes in digital assets, exchange to the USD will be based on capital gains.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
