CoinVoice has recently learned that, according to Decrypt, the American chain restaurant Steak'n Shake has started accepting Bitcoin as a payment method, but tax experts remind consumers to be aware of the related tax risks. According to the Internal Revenue Service (IRS) regulations, crypto assets are considered property rather than currency, and any transactions using Bitcoin to purchase goods are regarded as taxable transactions.
Coinbase's Vice President of Tax Lawrence Zlatkin explained that when consumers use Bitcoin to purchase goods, they need to calculate the difference between the purchase price of Bitcoin and its market value at the time of use as capital gains or losses, and pay the corresponding taxes to the IRS. Experts advise consumers to keep all transaction records and to choose a consistent method for calculating taxes.
Although the IRS typically does not audit taxpayers for small transaction omissions, the risk still exists as centralized exchanges report more user transaction data to the IRS. Using stablecoins pegged to the dollar 1:1 to purchase goods does not generate tax risks.
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Tax experts remind consumers to be aware of the tax risks associated with Bitcoin payments.
CoinVoice has recently learned that, according to Decrypt, the American chain restaurant Steak'n Shake has started accepting Bitcoin as a payment method, but tax experts remind consumers to be aware of the related tax risks. According to the Internal Revenue Service (IRS) regulations, crypto assets are considered property rather than currency, and any transactions using Bitcoin to purchase goods are regarded as taxable transactions.
Coinbase's Vice President of Tax Lawrence Zlatkin explained that when consumers use Bitcoin to purchase goods, they need to calculate the difference between the purchase price of Bitcoin and its market value at the time of use as capital gains or losses, and pay the corresponding taxes to the IRS. Experts advise consumers to keep all transaction records and to choose a consistent method for calculating taxes.
Although the IRS typically does not audit taxpayers for small transaction omissions, the risk still exists as centralized exchanges report more user transaction data to the IRS. Using stablecoins pegged to the dollar 1:1 to purchase goods does not generate tax risks.