Educating and mobilizing grassroots Americans on the critical issues surrounding cryptocurrency and decentralization.
A grassroots network educate and mobilize grassroots Americans on the critical issues surrounding cryptocurrency and decentralization.
The Digital Asset Policy Network (DAPNet) is a 501(c)(4) grassroots action organization that will fight for common-sense tax and regulatory policies to spur growth and innovation surrounding digital assets in the United States.
We believe that Blockchain technology and peer-to-peer networks providing trustworthy, time stamped information and exchange have the potential to do profound good. DAPNet's will work to ensure the our government does not stifle growth and innovation, chasing capital and talent overseas. Rather, we advocate for policies that will protect consumers and allow the industry to grow, innovate, mature, and prosper. Right here in America.
Right now, every citizen holding a digital asset is subject to the Trump tax reform law that may subject them to big tax bills due Tax Day in April 2019.
In 2014, the Internal Revenue Service put out notice 2014-21 that states “for federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.”
There is an exemption in Section 1031 of tax law for “like-kind” exchanges of property that was undefined for a long period of time and many interpreted to exempt crypto to crypto transactions from taxation.
The United States Tax Court found that, "Section 1031 refers to property of a like – not an identical – kind. The comparison should be directed to ascertaining whether the taxpayer, in making the exchange, has used his property to acquire a new kind of asset or has merely exchanged it for an asset of like nature or character.” Koch v. Commissioner, 71 T.C. 54, 65 (1978).
Since the Trump tax reform bill passed, Sec. 1031 exchanges can only be for real estate for real estate making the tax code clear that swaps of digital currencies for digital currencies are not tax free as of the tax year 2018.
In 2018, Rep. Ted Budd (R-NC) introduced H.R. 7361 that would create a special rule: "the exchange of virtual currency for virtual currency of like kind shall be treated in the same manner as the exchange of real property for real property of like kind."
This legislation excludes gains or losses so that a person would not have to deal with the IRS every time they use a digital currency to purchase another digital currency.
The U.S. government is driving the holders of digital assets overseas with this discriminatory tax treatment - join the Digital Asset Policy Network to fight to change tax law this year to fix the tax treatment of crypto-to-crypto transactions.