Replying to Avatar Keel

As I understand, today the taxman treats bitcoin as another asset like a stock. You bought some, you sold some and you pay a capital gains tax.

It’s not fully clear for me how the taxman treats when you sent your bitcoin to another person. I think they may (or already) treat it as a sale, then you are liable to pay the capital gain tax.

To summarize, the less the gov knows about you bitcoin , the better.
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Keel 2y ago

No, not only returning to fiat.

If you send peer to peer to another person, you need to reflect it in your tax statement. And for me it’s still unclear if you need to pay a capital gain tax or not in this case.

It depends how the taxman treats sending btc from one person to another.

Just imagine that you have 1 bitcoin and send 0.5 to me. If the taxman considers that you “sold” those 0.5 to me , then the capital gains tax can be a considerable amount and you will think twice if it’s reasonable.

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sperry 2y ago

Do you pay taxes if you sell a used bike to a neighbor? You're supposed to, in most states.

Becomes pretty interesting when you start diving down there, right? Gifts?

Did you just move it to another wallet? What's classified as a spend or a send? How can you tell the difference on chain?

If using law, can you prove beyond a shadow of a doubt, "highly probable" or "most likely" doesn't win.

Thanks for engaging. Real talk is good.