If you live in the US and you “purchase” Bitcoin with fiat and then use that bitcoin to purchase goods you are required by law to pay capital gains tax on your use of that bitcoin. So you are taxing yourself unnecessarily. Also converting BTC to the lightning network is also considered a taxable event.
Discussion
I think you’re wrong. What is the capital gain on buying $100 worth of bitcoin and transferring $100 of bitcoin?
Also btc to lightning conversion is not a taxable event that’s misinformation on all accounts
You only pay on gains. So if you buy at $100 and sell (or spend) at $130 value, you’d pay capital gains on that $30.
If you buy $100 of bitcoin and spend on something that costs you $80 what happens? Is that a capital loss of $20? No
It all depends on the market price when the transaction takes place. If it’s immediate (marginal change) then you don’t have to worry about paying tax.
In my above example if sold $80 worth of bitcoin whether it’s a loss or gain would depend on the market price.
Right. It’s pretty much just like selling stock or a home. But people should also remember if there are any costs, it is minus any costs such as fees.
Sounds great BUT that only applies if you only own that amount of BTC. If you bought $100 ten years ago and you’ve been holding it and then purchased another $100 and sold it that day your spread isn’t $30 it’s the gain from 10 years. FIFO.
You’re selling your BTC to the lightning network. Definitely taxable.
lol no your not. Do you have any idea how lightning works?
Go run a node and open your own lightning channel to see what’s actually happening. I’m going to stop replying because it’s obvious you need to dig deeper
Do you have any idea how the US government works?
retarded.
LN isn't a thing that you can "sell your BTC to."
You’re right you sell it to fiat first.
you are a very confused person
opening a LN channel is locking a utxo into a 2 of 2 multisig.
native Bitcoin. nothing changes.
there is no sale and no one at the IRS thinks there is.
