Topic: World's First brick and mortar retailer who now SELLS AND BUYS BITCOIN FOR CASH (Read 11994 times)

Watch this thread, I expect a major update here soon 

Actually it could be argued that the bitcoin community has very 'wide' pockets.  The sheer ease of donation to a cause via bitcoin may mean that a large number of contributors will choose to assist. 

yeah, Trader Steve:


we're a bunch of serious court cases away from an answer.

Bitcoin's lack of centralization (read: deep pockets) is both a blessing and a curse.

a blessing, because there's nobody and nothing for the government to attack.

a curse, because it's unlikely that the folks who will need lawyers the worst to defend themselves against the government will have the money to do so.

See my previous post above yours...

uh-huh.  that's what i thought.  a silver bar is a tangible - so, sales tax.  Bitcoin is not tangible.

Bitcoin is a currency - so, no sales tax.  in any state.

n.b.:  Bitcoin is remarkable in the same way that a photon of light is remarkable.  light:  sometimes it's a wave, sometimes it's a particle.  Bitcoin:  sometimes it's a currency, sometimes not - but it's always non-tangible.

in any case, not taxable.  right?

In three syllables: "It depends". Each State has their own rules and regulations. They could argue that you are selling an item (bitcoin) for cash - and that this is a "sale" and could be subject to "sales" taxes. Many States exempt precious metals and other items from sales taxes. If you trade a non-legal tender item for another item then it would most likely fall under the "barter" guidelines and only be subject to taxes on gains. Again, it depends on the interpretation of the enforcers.  For example, "trade dollars" from barter exchanges are considered a currency and tax enforcers expect sales tax to be paid on items "purchased" with trade dollars. Confused still? Me too! I say pick the box that you want to fit in and then get an opinion letter from the enforcers if you are concerned about your choice being rejected.

if the item is a currency with a denomination on it, it's not taxable.  Like a Silver Eagle coin that says 1 dollar is not taxable.  But a plain silver bar that is just metal, is taxable.

ok - maybe i'm just slow, but i don't get this sales tax thing.  why would anybody have to pay taxes when exchanging BTC for USD, or the other way around?

my understanding has always been that...

1.) sales taxes apply to goods and services.  Bitcoin isn't either of those.  and,

2.) no sales tax is collected for or by anybody, when conducting a currency exchange transaction.

could somebody break down this sales tax thing for me in words of one syllable?  kthxbai.

Five States With No Sales Tax: Oregon, Alaska, Montana, New Hampshire, Delaware

Source:
http://www.kiplinger.com/tools/retiree_map/index.html?map=2#anchor

Accept something other than currency for your bitcoin and you may be able to avoid the sales tax in the other states...

Why not making it public?
A list of local exchangers and restaurants would be very very interesting for back packers and tourists!

Any idea what the sales tax ramifications are for this kind of business?
I would consider doing this in California,  but I would prefer to stay out of any legal trouble.

This would be an amazing idea in every state with no sales tax!

Yes, it was a double inside joke.        LOL

"VERY MISLEADING" is a catch phrase I've forever pinned myself with, apparently.  :-)   <3   It's from the episode of The Bitcoin Show where I berated the "lazy journalism" of much of the press who had been reporting about Bitcoin.. and getting it all wrong.

Meze Grill is not only a sponsor of The Bitcoin Show, he's my close friend.  Yes, I've talked him into all of this.   But he's a Bitcoin evangelist now.      and the hummus is the best!

Thanks for helping answer questions, gang.   Yes. The NEW news is that Meze Grill not only accepts bitcoin for breakfast, lunch, & dinner....  but now they act as a local brick and mortar Exchange.   USD <--> BTC .....seven days a week ....in Midtown Manhattan ....New York City ....just a couple blocks from Times Square ....and Columbus Circle.

This is HUGE.

I called the Observer today (of course)  (I am very loyal and hardworking for my friends and sponsors), and now....   The New York Observer is on their way there tomorrow.... to write the story....

I believe this is a game changer.   As other retail merchants discover that they can not only ACCEPT bitcoin..... but they can also SELL bitcoin, and BUY bitcoin...  the Bitcoin Economy is getting ready to explode!!!!  

"Up up up!"   ( another catch phrase I've been pinned with.    )

Also....    If you're not in New York City, and are looking for a local bitcoin-for-cash dealer anywhere in the world... like Meze Grill.... call me or email me.    I am building my own personal database of trusted Bitcoin for Cash (and Cash for Bitcoin) Exchangers.   I make nothing out of this, but I will only refer people to dealers I trust, and those I've received no complaints about, etc.

And finally, if YOU are interested in becoming a local Bitcoin-for-Cash and/or Cash-for-Bitcoin Exchanger in your local community....  Contact me.  I can add you to my private directory of exchangers...  and I can probably hook you up with a larger exchanger who will charge you zero fees and instant transactions.... which is very important for such a business.   Again, don't hesitate to call me, text me, skype, or email me.

Go Bitcoin!

what POS device are they using?  is hooked up to mtgox?

Interesting. I hadn't considered it from that perspective.  It is similar to a store selling a gift-card.

Yeah, but hows the hummus?

As was mine 

It is a restaurant that accepts btc for food, but that is old news. the new news is that it is now also a currency exchange between BTC and USD. does room 77 do both as well? sell food and provide an exchange service?

Actually I don't think he has to charge sales tax for bitcoins sold if he has been paid with bitcoins for regular business, since he has already collected the sales tax when he sold his food for bitcoins, bitcoins serving as a type of IOU.

I am also doing bitcoins<->mexican pesos in my comic book stores in Mexico, although so far I have only done one transaction for $BTC 1.65

Littleshop's computer shop in the Baltimore area also bought and sold bitcoins for a while.  Not sure if they still do it, or if they got any business.  I was tempted to go there when I was in town for railsconf.  He's the same guy who runs http://www.cryptoanarchy.us/

change it to "New York's First"

If you ever happen to come to Germany, Berlin, there is a restaurant/bar called Room 77 that accepts Bitcoins since 2 months, click. They serve delicious burgers, burritos and quesadillas. joecooin runs this place.

Maybe we should start an international restaurant guide? I have no idea about the other local sub-forums, there might already be more restaurants accepting Bitcoins.