Sometimes, yes. Remember, a capital gain only applies when you profit. So if my paycheck buys Bitcoin at 110k and it’s 121k when I pay my bills with it, then my life became 10% cheaper at the time of sale. Yes, I’m going to owe a capital gains on that profit but I would rather have gained and be taxed for it than to have ended the month with a net zero increase on my overall wealth. I hope I explained that correctly. Side note, the credit cards I do all my monthly spend on give me cash back, this can help offset any losses I may incur in the short term.
Discussion
Very good point, my low IQ brain somehow forgot that factor 😅 do you need to make a bunch of accounting and reporting in order to do that within the legal framework though? Sounds like a hell of a lot of work... Or do you just wing it and hope for the best 😅 I assume, that as you are using strike and fully KYC'd you're doing everything legally and reporting every taxable event? 😅
That’s the beautiful thing about living on a bitcoin standard with Strike. They make taxes easy and issue the appropriate tax form to come tax season. The form sent to you is a 1099-DA.
Oh ok! That's pretty sweet, 🤔 hmmm, thanks for the info! it's definitely some food for thought to work towards that BTC standard 💪🏼
You’re welcome. I’m glad we had this conversation. Let me know if you have any other questions on the topic. What I love about Bitcoin is it can be used a variety of ways. How one person uses the technology will differ from how someone else uses it.