I wonder how taxes are calculated with this feature
Discussion
Strike does it all for you after year end. They generate a 1099-B form will all of your transactions
So you end up paying everything x% more because of taxes? What am I missing here? I'd rather keep the smallest amount in fiat to spend. It makes sense only in free capital gains jurisdictions.
It wouldn’t actually work like that. Assuming the value of the BTC goes up only a small portion go to taxes and the rest of the gain actually makes the bills you pay cheaper.
Let’s say you have $110 for a bill and you bought $100 worth of BTC. Also assume you have ~25% tax rate. If the value of the BTC appreciates 10% to $110 and you pay that bill, $2.50 would go to the government and you gained $7.50 that went towards the bill payment that you wouldn’t have otherwise if you were just holding fiat. 🤯
Yeah you're right but it doesn't apply for long term holdings 🤔 if everything is automatically reported then it could be really interesting 😎