How does this work for federal?
If Governor Mike Kehoe signs HB594 into law, Missouri residents will no longer incur capital gains taxes at the state or federal level when they spend #bitcoin.
More in my latest:
https://bitcoinmagazine.com/news/missouri-bill-would-enable-tax-free-bitcoin-spending
Discussion
My question as well? How does a state change IRS code?
Good question. I’m not an expert in this matter. I just know, based on what I’ve researched, that the tax code situation in MO is quite unique.
By this I mean how would the feds be ok with the state allowing this as a write off basically…?
From what I understand, MO has unique tax laws that enable the adjusted gross tax income at the state level to also be the federal adjusted gross income. A tax attorney touches on the dynamic in this piece: https://cointelegraph.com/news/missouri-could-become-first-state-eliminate-capital-gains