Using Bitcoin to buy a sandwich could trigger a tax bill

in #bitcoin6 years ago

Crypto currencies are not like real dollars. The IRS considers crypto currencies to be a form of property, which means that every crypto currency transaction, no matter how small, triggers a separate tax gain or loss. Retailers including some Subway sandwich shops are now accepting Bitcoin. But buyer beware. You'll have to report that transaction to the IRS!

"if you trade a piece of bitcoin to Subway in exchange for a sandwich, you have a tax realization event, meaning the IRS treats the transaction as if you sold the bitcoin for the sandwich."

Source: https://www.cnbc.com/2017/10/20/using-bitcoin-to-buy-a-sandwich-could-trigger-a-tax-bill-commentary.html

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