Bitcoin will be accepted for tax payments in Colorado - page 2.

DannyHamilton

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Quote from: franky1 on February 16, 2022, 11:36:58 PM

rather then the old way of waiting for the person to convert to fiat, where its only then declared as gains once they declare they have extra fiat
old way: (hoarding coin for 5 years=no fiat gains for 4 years 11month 27days)

Additionally, at the time of paying the taxes with BTC (or any other crypto), the person making the payment will experience capital gains (or loss) on the value of the coin that they used for payment even though they didn't convert it to fiat. Therefore, they'll owe capital gains tax (or potentially can deduct a capital loss) when they file the next year's taxes. According to the government's current rules regarding cryptocurrencies in the U.S., spending cryptocurrencies to make a payment on anything is identical (in terms of legal tax responsibilities) to converting it to the same amount of fiat and then spending the fiat, and the same taxes are owed even though you didn't personally covert to fiat.

franky1

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Quote from: CaVO32 on February 16, 2022, 06:46:56 PM

The move will be beneficial in terms of convenience and transaction fees. It is true that some credit card companies are charging hefty fees. But for the user to get acquianted on this payment method, they need to learn some basic crypto info, how to buy crypto and how to send crypto. The government should also give some basic tutorials on how to do it so their constituents will be confident that they are doing it right.

this is not about getting fiat holders to convert to btc to then pay tax..
this is about btc holders paying tax without themselves needing to convert to fiat first

i believe[cynically] the next step.. once btc payment methods are available.. would be that the state then demands a tax on crypto. where by as soon as a person makes yearly 'gains'(year end valuation increase) they are supposed to pay tax on those gains in btc for that year.

rather then the old way of waiting for the person to convert to fiat, where its only then declared as gains once they declare they have extra fiat
old way: (hoarding coin for 5 years=no fiat gains for 4 years 11month 27days)

DapanasFruit

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Binance #Smart World Global Token

We should be taking this as another victory for Bitcoin in the government and hopefully other states can see the benefits of being paid in Bitcoin in their day-to-day business with the people. I am a little bit surprised that Governor Jared Polis is actually a Democrat as cryptocurrency seems to have more supporters in the other side of the aisle in political spectrum with many progressive Democrats not liking it. I am happy for the people of Colorado as they now have an option on how to pay things better with more convenience and less hassles.

CaVO32

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The move will be beneficial in terms of convenience and transaction fees. It is true that some credit card companies are charging hefty fees. But for the user to get acquianted on this payment method, they need to learn some basic crypto info, how to buy crypto and how to send crypto. The government should also give some basic tutorials on how to do it so their constituents will be confident that they are doing it right.

nullama

hero member

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Governor of Colorado, Jared Polis, announced in an interview with CNBC[1] that people will be able to pay their state tax using Bitcoin from around mid-2022, with plans of including the option to pay for most other things from the state such as licenses a few months after that.

They won't be holding any bitcoin though, they will be converting Bitcoin to USD at the exact moment they receive it.

Quote from: Jared Polis

Just like accepting a credit card, but with a much lower transaction cost

This would make Colorado the first US state to accept Bitcoin for tax payments, joining the canton of Zug in Switzerland which started doing so in 2021, and of course El Salvador.

Also worth noting the governor has been a long time fan of Bitcoin, as he was the first US politician to accept campaign donations in Bitcoin[3].

[1]: https://www.youtube.com/watch?v=pO3TMlEpJ4U&t=414s
[2]: https://www.investing.com/news/cryptocurrency-news/the-swiss-canton-of-zug-openly-embraces-bitcoin-and-ethereum-now-accepts-crypto-tax-payments-2423315
[3]: https://timestabloid.com/colorado-governor-just-announced-that-his-state-will-accept-bitcoin-for-tax-payments/

Topic: Bitcoin will be accepted for tax payments in Colorado - page 2. (Read 301 times)