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TKay 11mo ago đź’¬ 6

Not sure how many started using Bill Pay from nostr:npub1ex7mdykw786qxvmtuls208uyxmn0hse95rfwsarvfde5yg6wy7jq6qvyt9

I’m going to test it out for 2025.

Not sure though how the taxes will workout. Let’s say bitcoin goes up from when I buy it. Then sell it to pay a bill. The profits are taxed as income tax which is very high, this might bring me down to a net loss?

Does that mean this is only beneficial if the bitcoin price shoots up enough to cover both tax and bill? -> taxes are confusing.

Example:

I buy $100 worth of bitties, price goes up, it’s now worth $110.

I pay my electricity bill which is $110. I pay 37% tax on the $10. That’s about $3.7. I still benefited from the $4.3?

Is this math correct?

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Discussion

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Neon Nobody 11mo ago

Yes.

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Dr. Fernando Morales 11mo ago

Yeah, you pay tax on the $10 since it's profit.

Or, you can wait for Jack to launch his btc loan service, where you put btc as collateral in exchange for fiat and you don't have to pay taxes on loans. Then just roll over the loan with a second loan, which liberates the btc in your first loan. Rinse and repeat. This is not financial advice, and keep an eye on the LTV ratio.

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Moe 11mo ago

I had similar questions and haven’t fully committed to using Strike Bill Pay for this reason. They say they handle the tax forms, but I still wonder how it plays out after a full year of paying bills this way. Every paid bill would be a taxable event, so I’d expect that to add up quickly—especially if you’re paying a lot of bills.

And what happens if Bitcoin dips? If my BTC is worth less when it’s time to pay, does that make my bills effectively more expensive that month? Feels like I’d have to track tax lots constantly and maybe even switch to paying in fiat if the math doesn’t work out. Unless there’s a tax-loss advantage that I can’t wrap my head around.

It’d be great to see someone document a full year of using this so we know exactly how the taxes and price fluctuations end up affecting everything. Anyone else already doing this? nostr:npub1cn4t4cd78nm900qc2hhqte5aa8c9njm6qkfzw95tszufwcwtcnsq7g3vle nostr:npub1ex7mdykw786qxvmtuls208uyxmn0hse95rfwsarvfde5yg6wy7jq6qvyt9

If you do it, please update and let me know how it goes.

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TKay 11mo ago

So I setup three bills - which are the only ones I pay - and I’ll see how that goes.

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Wilfred Allyn 11mo ago

I think your math is correct. I believe that you'd only end up paying taxes if you're in profit. I'm also planning on using bill pay to finally switch over to a personal bitcoin standard.