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> I use it for that purpose all the time. Not to dig into your business too much, but: Any weird tax/legal implications around that? I didn't want to dig into

> I use it for that purpose all the time. Not to dig into your business too much, but: Any weird tax/legal implications around that? I didn't want to dig into it too much (just because often these things are rabbit holes with unclear answers), but I'm really curious about it for the next time we have to send a payment. > In general, People in developed countries don't have a clue about how painful and time consuming an international payment can be. I can definitely say I had no idea until I had to do it myself. Trying to figure out how to do a wire transfer to someone in another country was a huge boondoggle (and expensive).

tom_ 8y ago
In the UK a capital gain (or loss) may occur when you use Bitcoin to buy something, whatever that thing is. (Buying something with Bitcoin is effectively selling Bitcoin for that thing. The thing has a value, and that is some evidence that the Bitcoin is worth that much.) This is a taxable event and if the gain is large enough then you'll need to pay the tax on it. I imagine many countries have rules that are quite similar.
- wgerard 8y ago
  Interesting - so wait, if I send someone in the UK bitcoin and they sell it immediately for GBP, does that count as a capital gain? Or just if the price changes between when they receive it and convert it to GBP? EDIT: I guess it doesn't really matter in this case since presumably short-term capital gains rate is similar (or equal) to the income tax rate, but just curious for my own sake.
  - tom_ 8y ago
    The gain is the difference between the value when they got it and the value when they sold it, so probably nothing if they do both on the same day. I guess you may have made a gain when you gave the Bitcoin away, since it's treated as a disposal at the market rate... maybe? I don't know the rules for this. (Regarding speed of selling - there's no short-term CGT rate in the UK, but there are rules about quick turnaround that may apply. Consult an accountant.)
wslh 8y ago
> Not to dig into your business too much, but: Any weird tax/legal implications around that? You have the typical two options but generally speaking In non-developed countries the concept of taxes or evasion is relative, ethically speaking.

tom_ 8y ago

In the UK a capital gain (or loss) may occur when you use Bitcoin to buy something, whatever that thing is. (Buying something with Bitcoin is effectively selling Bitcoin for that thing. The thing has a value, and that is some evidence that the Bitcoin is worth that much.) This is a taxable event and if the gain is large enough then you'll need to pay the tax on it. I imagine many countries have rules that are quite similar.

wgerard 8y ago
Interesting - so wait, if I send someone in the UK bitcoin and they sell it immediately for GBP, does that count as a capital gain? Or just if the price changes between when they receive it and convert it to GBP? EDIT: I guess it doesn't really matter in this case since presumably short-term capital gains rate is similar (or equal) to the income tax rate, but just curious for my own sake.
- tom_ 8y ago
  The gain is the difference between the value when they got it and the value when they sold it, so probably nothing if they do both on the same day. I guess you may have made a gain when you gave the Bitcoin away, since it's treated as a disposal at the market rate... maybe? I don't know the rules for this. (Regarding speed of selling - there's no short-term CGT rate in the UK, but there are rules about quick turnaround that may apply. Consult an accountant.)

wslh 8y ago

> Not to dig into your business too much, but: Any weird tax/legal implications around that? You have the typical two options but generally speaking In non-developed countries the concept of taxes or evasion is relative, ethically speaking.