2024-12-26T09:06:10+0000

Hey guys, it’s Ryan. Finding a path to financial freedom for the self-employed. Finally, what happens if you spend your crypto in commerce? Much like the prior examples, if you use bitcoin to buy a pizza, you will probably owe taxes on the transaction. To the IRS — despite some technicalities — spending crypto isn’t any different from selling it. You need to sell the asset prior to exchanging it for goods or services, thus, subject to capital gains. Now I know what you are saying, what if Tesla accepts Doge, and I pay in Doge, do I have to pay capital gains? I mean, I just moved money from Doge wallet to Doge wallet, I didn’t actually convert it or sell it? The short answer appears to be yes. The IRS sees crypto more like a type of property than a currency so if you receive crypto as payment, you will pay taxes on its current value, and as the “seller” of said currency, if you depart with it and it’s worth more than your cost basis, you’ll be taxed on the difference. I would love to be wrong about that, so if someone smarter than me has a different take, put it in the comments below. If you like this video, subscribe to my channel, Ryan Roghaar: https://www.youtube.com/channel/UCcv-5hRKRLUE8hV9pL5hIXg For more related videos, tune into my playlist, Crypto for beginners: https://www.youtube.com/playlist?list=PLcca1IiT3-Vy6EEYATBiOOftyEoN2nvZg ---- ► Where I Buy Bitcoin: https://rogha.ar/coinbase ► Get up to a $250 in Digital Currency: https://rogha.ar/blockfi ► Where I buy stock (Get 1 FREE Stock When You Sign Up): https://rogha.ar/robinhood ► Open A Roth IRA: M1 Finance ► How I Protect My Crypto: https://rogha.ar/ledger ► Follow Me On Instagram: https://www.instagram.com/ryanroghaar/ ► Read My Articles: https://ryanroghaar.medium.com/ ► Peep My NFTs: https://rogha.ar/nifty ► All my links in one place: https://rogha.ar *No content on this channel is meant to be construed as investment advice, it's for entertainment purposes only. Links above may include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future. Remember, always do your own research. Music used under license from Envato Elements. #CryptoCurrency #Taxation #CryptoInCommerce