It is often argued how bitcoin cannot be taxed because it would be an insane task for the IRS to trace back every single transaction accurately to the people that own those bitcoins. It's just imply not possible, and in the future as Confidential Transactions, Schnorr Signatures, Mimblewimble etc get activated thanks to segwit (once we defeat the government-paid anti-segwit trolls) it will be pretty much a waste of time.
But implying that you are excempt of tax just because of that is in my book delusional. If you want to buy land with bitcoin, you cannot escape taxes, not even a car.
My question is, how would you go about it? I have a very modest amount of BTC so I wish I had those problems, but im just wondering, if you had enough BTC to buy a nice penthouse, how would you go about it? I don't see any other way out but to calculate how much the penthouse costs + taxes and cash out the BTC in some exchange (since localbitcoins is not going to have enough volume to do that, and even if you did it throught localbitcoins, it would need to be in real life in exchange of cash, and you't but real state with cash, maybe you can get away with a car, but not real state or land, and physical cash will not even exist in the future.
Anyway, my point is, you can't escape the government when it comes to important purchases.
