Would buying a casascius(loaded physical Bitcoin) taxable event

cafucafucafu

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Quote from: K_os on September 05, 2021, 02:04:47 PM

Would love for some one help me out on this. This is for person living in the states.
I want to buy a loaded casacius coin 1.1 btc. If I purchase it and the seller most likely sells my btc
The following day. Would I pay capital gains tax on the 1.1 or does the buyer pay it real confused not a tax person.

No idea where your jurisdiction is.

But for most countries, this will not be a taxable event until you sell.

The only thing that you need to be aware of when you buy the physical coin is your cost basis. That will determine what your CGT liabilities are going into the future when you do decide to sell. But the CGT liability is not predetermined in any way.

jackg

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https://bit.ly/387FXHi lightning theory

Quote from: K_os on September 05, 2021, 02:24:56 PM

I purchased the coins from an exchange won’t the exchange report that I sold it to someone else?
Again appreciate everyone input.

How would they know you've sold it to someone else? Do you not have custody of the coin, is it still with them?

Most companies are not designed to annoy their customers either, they'll likely report to you if you had to report something than going straight to the IRS.

odolvlobo

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Quote from: K_os on September 05, 2021, 02:04:47 PM

Would love for some one help me out on this. This is for person living in the states.
I want to buy a loaded casacius coin 1.1 btc. If I purchase it and the seller most likely sells my btc
The following day. Would I pay capital gains tax on the 1.1 or does the buyer pay it real confused not a tax person.

I'm not a tax expert, but the IRS is pretty clear on this subject. You must pay capital gains tax on the difference in the value of 1.1 BTC between when you bought it and when you exchanged it for the Casascius coin. It doesn't matter what the seller does with your 1.1 BTC.

Quote from: K_os on September 05, 2021, 02:24:56 PM

I purchased the coins from an exchange won’t the exchange report that I sold it to someone else?

The exchange may report that you withdrew the 1.1 BTC. But it doesn't necessarily know what you did with it, and it doesn't change anything.

K_os

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Quote from: DaveF on September 05, 2021, 02:17:25 PM

You bought something so you don't pay gains. Assuming you have the BTC and are just sending it to them.
What the seller does with the BTC at that point is no longer a concern to you.

*This is not tax advice and there are some situations where it is wrong, but for the most part till you convert to fiat, it does not matter.

-Dave

I purchased the coins from an exchange won’t the exchange report that I sold it to someone else?
Again appreciate everyone input.

DaveF

legendary

Activity: 3500

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Crypto Swap Exchange

You bought something so you don't pay gains. Assuming you have the BTC and are just sending it to them.
What the seller does with the BTC at that point is no longer a concern to you.

*This is not tax advice and there are some situations where it is wrong, but for the most part till you convert to fiat, it does not matter.

-Dave

jackg

copper member

Activity: 2856

Merit: 3071

https://bit.ly/387FXHi lightning theory

You'd only pay tax when you sell and buy the btc afaik for fiat. If you sold the cars coin for 1.1 after buying it for 1.1 there'd be no tax to pay.

Unless the btc you pay for a coin is different for that when you sell it (then it'd be the gain or loss of the difference times the fiat value of the coin).

Disclaimer: not legal advice just how I'd do it.

K_os

jr. member

Activity: 41

Merit: 7

Would love for some one help me out on this. This is for person living in the states.
I want to buy a loaded casacius coin 1.1 btc. If I purchase it and the seller most likely sells my btc
The following day. Would I pay capital gains tax on the 1.1 or does the buyer pay it real confused not a tax person.

Topic: Would buying a casascius(loaded physical Bitcoin) taxable event (Read 89 times)