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Purchasing something with bitcoin can trigger capital gains/loss. If you buy 1 BTC at $700, it increases to $800, and you pay 1 BTC for something worth $800, th
by emddudley 10y ago
Purchasing something with bitcoin can trigger capital gains/loss. If you buy 1 BTC at $700, it increases to $800, and you pay 1 BTC for something worth $800, then you have to report and pay taxes on $100 capital gains.
- 627467 10y agoMay be unrelated... but what happens when I purchase goods with a foreign currency which I had bought before (and reported the purchase) and said foreign currency value had increased 15% since the moment I reported its purchase?
- snark42 10y agoTechnically you have to report and pay capital gains if the change in value is more than $200. In your case 15% gain is probably not more than $200 so you wouldn't have to report it. However if you're talking about $100,000 initial FX transaction you would have to report the $15,000 as a long or short term capital gain.