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Arizona Debates Skipping State Tax on Cryptocurrency Freebies

March 25, 2022, 8:45 AM

Customers would be able to accept free, or airdropped, cryptocurrency without worrying about paying income tax under legislation being considered in Arizona.

The House-passed legislation (H.B. 2204) is among several potential tax changes up for debate in Phoenix.

In addition to clarifying that a free crypto token wouldn’t be taxable income, the measure seeks to let taxpayers subtract transaction fees known as “gas fees” when declaring gains or losses after selling virtual currency. It also would add stolen virtual currency and non-fungible tokens (NFTs) to the list of allowable tax deductions for personal casualty losses and remove the ...