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16278100 No.16278100 [Reply] [Original]

I want to use bitcoin to pay for stuff since I get a discount at an online store, but I don't want to hassle with the taxes at the end of the year.

It would be right away after I get my bitcoin I pay / buy something.

I don't do taxes for regular purchases each year, but do you have to do that if you use bitcoin and don't let it sit longer than an hour or so?

anyone know? I save about $10-$15 or so using bitcoin over a credit card on some websites.

It's 100% completely legal. This is nothing even grey area it's basically just regular every day to day purchases, but some websites prefer bitcoin though.

>> No.16278121

>>16278100
The irs does not consider bitcoin to be a currency. It considers it to be a security like stock. Therefore, any upward movement in price between the time you buy bitcoin and the time you use it to buy something else is subject to capital gains tax. At least that's how I understand it from the research I've done.

>> No.16278160

I'm not sure how taxes are done in the US, but here (NL) bitcoin is part of your wealth and you need to pay wealth tax over it. The amount is based on what your total wealth was on januari first

>> No.16278168

>>16278121

that's confusing because if you switch currencies and the prices fluctuated like forex it would be that you might have a stronger currency after you switch over to it even on vacation. most likely minute like bitcoin, but...

I figure you are right on this alone...

-----

be nice if we had a 12 hour time window for purchases and such online.

>> No.16278248

Buying something with Bitcoin is indeed a taxable event, and you may even having to calculate and pay a sales tax on top of that. You have to calculate the fair market value in USD at the time of the sale. Fun right?

>> No.16278396

>>16278100
If it’s small purchases here and there or even large purchases I wouldn’t report it. There is no chance the irs will even have it on their radar. I day trade crypto and don’t report anything. Haven’t heard a peep about it from anyone. My accountant said not to mention anything crypto to the irs and if I get called on it, we will play dumb and file a correction to the tax return after the fact.

>> No.16278586

>>16278168
Yeah if it's a small amount and you dont trade crypto regularly you can probably get away without declaring it due to the likelyhood that the taxable amount would be a few cents. Also, if the value drops you'd technically be able to clam a capital loss although it would similarly be a waste of time unless the amount was large enough.

>> No.16278609

>>16278396
Do you use us based exchanges or foreign ones with a vpn?

>> No.16278637

>>16278168
It gets to be a little confusing but I do believe there is slight leniency if you purchase BTC and then immediately commit a transaction with it.
Only good news for burgers is if you took a loss on the BTC value prior to the transaction then it's a future deduction on all future gains.

>> No.16278641

>>16278609

I'd probably just do coinbase.com

I think I'm going to figure out wire transfers or just go with pay by bill pay / check

>> No.16278690

>>16278609

just coin base.

silver/gold - buying it online and such.

it's like a 4/3/0 split - 0 is full price - 3% discount with bitcoin and/or 4% with check and/or etc and/or wire transfer.

I might just go with check and be patient and wait for it to arrive at that point or something like that.

>> No.16278791

>>16278690
Dont use coinbase. They have the highest fees in the entire crypto space. Regular coinbase is like 1.5-2%, coinbase pro is around 0.5% and binance.us has no fees for the first 30 days and a 0.07% after that. If you buy $5000 in bitcoin on coinbase you'll be paying like $80 in fees

>> No.16278840

>>16278791

thanks - 3% fee came back to me that way somewhat at least...

don't want to do binance.us - which is HK I think or hong kong... going to keep thinking on this one and/or searching around I guess for that matter...

>> No.16278889

>>16278840
No binance.us is a US based exchange that is a completely separate comapany that just uses the binance brand. Kind of like a franchise.

>> No.16278912

>>16278791

Can you buy bitcoin with dollars on binance now? What is the withdraw fee? Coinbase charges no withdraw...

>> No.16278942

>>16278912
You cant use normal binance without a vpn. Binance.us is a us company that has permission to use the binance name and complies with us regulations. No withdrawal fees and you can link a bank account just like coinbase. The only issue is their volume isn't as high as coinbase, although I think that will change in time due to their significantly lower fees and the fact they have more coins listed.

>> No.16278985

>>16278889
>>16278942

That's great to know.

There's also something new in the realm of crypto.