Replying to Avatar boston wine

Thoughts on using nostr:npub1ex7mdykw786qxvmtuls208uyxmn0hse95rfwsarvfde5yg6wy7jq6qvyt9 more in day-to-day use in the States.

I’d love to spend (+ replace) Bitcoin wherever possible. Not just to facilitate adoption, but also to reduce the “normalized invasion of privacy” over fiat networks. This can be achieved using prepaid debit cards, purchased with Bitcoin from a service like Strike.

However, in USA, every single sell/spent UTXO is a taxable event, which includes (to my knowledge) small spends.

How can we utilize Bitcoin conveniently, without needing to deal with the minutiae of what amounts to a “buy + immediate sell” order, from a tax perspective?

My understanding is you have to report every sell order, even if there are no capital gains… right? How do Bitcoin businesses do it? How to stay within legal parameters and not end up with a migraine?

​nostr:nostr:npub1cn4t4cd78nm900qc2hhqte5aa8c9njm6qkfzw95tszufwcwtcnsq7g3vle any thoughts you have re: how to make the strike user’s experience more “tax convenient” would be appreciated 🙏🤙

This is an important and complicated issue.

I struggle with this a bit as well.

As it stands today, in most countries, each time you sell Bitcoin, also when you buy anything for Bitcoin or even zap someone, it is a taxable event.

At least that's my understanding.

This means our options are:

1. Ignore it, violate the tax code and hope they will not catch us or will not chase very small amounts, try to buy non KYC. But this is risky.

2. Attempt to report tax properly for every transaction. But this is impossible from a practical perspective.

3. Do not sell or spend Bitcoin at all. Until the government declares it as a non-taxable event, if ever. But then what about adoption?

What other better options do you see?

I'd like to be wrong on this.

But, like Saylor said, the moment they declared Bitcoin a commodity, it meant it cannot be "money" from the government or tax perspective. It can be a treasury reserve asset, a digital gold, great, but not money...

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