Sorry, America, You Have to Pay Taxes on Your BitcoinFlexslider February 28, 2018 Comments Off on Sorry, America, You Have to Pay Taxes on Your Bitcoin 37
Because bitcoin and other cryptocurrencies are seen as property by the U.S. government, capital-gains taxes apply to every transaction made. Even if you were just buying a cup of coffee with bitcoin you have to report every transaction using bitcoin. Each sale or purchase technically constitutes two transactions: (1.) selling property (bitcoin) and (2.) using the proceeds of that bitcoin sale to buy a product. So the person who bought a $1 million home using any cryptocurrency would have to pay capital-gains tax on the transaction as well as real-estate taxes.
Source: Sorry, America, but you have to pay taxes on your bitcoin — here’s how – MarketWatch