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This is a question I don't know. And I was wondering if HN could shed some light on this. The IRS treats bitcoin as an investment property. What happens when
by bb88 7y ago
This is a question I don't know. And I was wondering if HN could shed some light on this.
The IRS treats bitcoin as an investment property. What happens when one trades investment property for a car, or a boat, say?
- AlexandrB 7y agoI’m not an accountant, but based on what I know about stocks you would get taxed on you financial gains (if any) based on the market value of the bitcoin at the time you trade it for the car.
- bb88 7y agoSo that would probably hold true with bitcoin since the IRS sees bitcoin as an "investment property" more akin to stocks and bonds.
- beefalo 7y agoIt is the same as using anything other than USD to trade for something. Wether that is Stocks, Euros, GBP, goats, if you bought it at one price and traded it for something else based on a different price, you owe taxes for your capital gains from holding that asset.
- pault 7y agoYou are taxed as if you sold the BTC and immediately bought your boat with the proceeds of the BTC sale.