H.R. 10357
Digital Asset Tax Certainty Act
Official summary
No official summary yet.
Text of the bill
I Removing tax barriers to the use of digital assets as a medium of exchange
II Providing parity between digital assets and comparable traditional financial assets
III Applying existing tax anti-abuse rules to digital assets
IV Clarifying the tax treatment of mining and staking
(a) Determination of source. Section 863 is amended by adding at the end the following new subsection:
(f) Treatment of income from digital asset validation supporting activities
(1) In general. Income from digital asset validation supporting activities shall be sourced—
(A) in the United States if the taxpayer is a United States resident, and
(B) outside the United States if the taxpayer is a nonresident.
(2) Treatment of branches
(A) Foreign branches. In the case of a United States person with a qualified business unit (as defined in section 989(a)) in a foreign country, income described in paragraph (1) that constitutes business profits attributable to such unit shall be sourced outside the United States.
(B) U.S. branches. In the case of a person that is not a United States person and that maintains an office or other fixed place of business in the United States, income described in paragraph (1) attributable to such office or other fixed place of business shall be sourced in the United States.
(C) Attribution. For purposes of subparagraphs (A) and (B), the Secretary may issue such regulations or other guidance as the Secretary determines necessary or appropriate for purposes of determining the amount of business profits attributable to a qualified business unit or office or other fixed place of business.
(3) Treatment of partnerships. In the case of a partnership, except as otherwise provided by the Secretary in regulations or other guidance, this subsection shall be applied at the partner level.
(4) United States resident; nonresident. For purposes of this subsection, the terms United States resident and nonresident have the meaning given such terms, respectively, in section 865(g)(1), determined after application of section 865(g)(2).
(b) Determination of character
(1) In general. Part IV of subchapter P of chapter 1 is amended by adding at the end the following new section:
1261. Income from digital asset validation supporting activities. Income from digital asset validation supporting activities shall be treated as ordinary income.
(2) Clerical amendment. The table of sections for part IV of subchapter P of chapter 1 is amended by adding at the end the following new item:
Sec. 1261. Income from digital asset validation supporting activities.
(c) Effective date. The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
V Ensuring that owners and users of digital assets face an appropriate tax compliance burden
VI Definitions; regulations; rules of construction
VII Full House Act