Does it trigger a tax event to buy something from a square terminal with btc?
Discussion
Only if you're not careful.
In other words: yes. I believe it's considered a "sale" of the bitcoin (even though you didn't "sell" it, you sent it to someone else). Don't ask how this makes sense; it doesn't. It's a fucking criminal racket.
The IRS applies this to all barter.
they imputes a USD value to both sides of the transaction, which creates a "realization event" on your side, since they're looking at the BTC you're "disposing of" in USD terms, and this current USD value is likely higher than the value when you received the BTC.
Presented
i love it
might be harder to pull off if you're buying goods though. it implies the merchant was giving away, at a loss, their products to you, which is unreasonable.
they'd need to be in on it and also have their own sign about how they are running a special where they discount their goods 100% for bitcoin transactions. then you say "oh wow thanks for giving me this for free!" and present your card and ask them to put X amount into their square terminal so you can send your gift.
and you'd still both get arrested.
😂🤝