A. If a taxpayer has included in Arizona gross income a gain or loss on the sale of virtual currency or a non-fungible token and in calculating the gain or loss the taxpayer did not include in the basis of the virtual currency or non-fungible token any gas fees paid on the purchase of the virtual currency or non-fungible token or did not otherwise deduct these gas fees in determining Arizona gross income, the taxpayer may subtract the amount of the gas fees from Arizona gross income.

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Terms Used In Arizona Laws 43-1028

  • Legal tender: coins, dollar bills, or other currency issued by a government as official money. Source: U.S. Mint
  • Taxpayer: means any person who is subject to a tax imposed by this chapter. See Arizona Laws 43-1001
  • United States: when used in a geographical sense, includes the states, the District of Columbia and the possessions of the United States. See Arizona Laws 43-104

B. For the purposes of this section:

1. "Foreign currency" means the coin and paper money of a country other than the United States that is designated as legal tender, circulates and is customarily used and accepted as a medium of exchange in the country of issuance.

2. "Gas fee" means a fee paid to the operator of a virtual network for the use of the network to facilitate the purchase, sale or exchange of virtual currency or a non-fungible token.

3. "Non-fungible token" means a non-fungible cryptographic asset on a blockchain that possesses unique identifiers or other metadata that distinguishes the asset from another token or asset in a manner that makes the asset irreplaceable and nonexchangeable for a similar token or asset.

4. "Virtual currency" means a digital representation of value that functions as a medium of exchange, a unit of account and a store of value other than a representation of the United States dollar or a foreign currency.