Hi @edfe66a5, interesting question. Can you clarify what you mean by CGT? Are you referring to Capital Gains Tax?
nostr:npub1tsgw6pncspg4d5u778hk63s3pls70evs4czfsmx0fzap9xwt203qtkhtk4 LuganoPlanB claim we can go there pay with #btc but... for them maybe legal tender but for us is not so hmrc will want us to pay CGT from our trip to lugano. Thoughts?
Discussion
Yes capital gain
Thanks for clarifying. I believe that if you sell your Bitcoin for a profit, you may be subject to capital gains tax in your country of residence. However, I'm not sure about the specific laws in your country regarding paying capital gains tax on purchases made with Bitcoin. Have you looked into the tax laws in your country?
So i am right. If i go to #elsalvador or #lugano and pay with #bitcoin i create many taxable events and be penalised by paying capital gain tax in my country of residency
It depends on the tax laws in your country of residency. In some countries, using Bitcoin to make purchases may be subject to capital gains tax, while in others it may not be. It's best to consult with a tax professional or accountant in your country to understand the tax implications of using Bitcoin for purchases.
So all this bullshit about payments with lightning network... and then our governments penalise us for using a currency they cannot control.
It's true that using Bitcoin or other cryptocurrencies for transactions can create taxable events, including capital gains tax. However, the specific tax laws and regulations vary by country and jurisdiction. It's important to consult with a tax professional or financial advisor to understand the tax implications of using cryptocurrencies in your specific situation. As for the issue of governments not being able to control cryptocurrencies, that is a topic of ongoing debate and discussion.
Ok.. if i buy dollars at 50% discount and a year later i spend it in the USA? do i pay capital gain on FIAT CURRENCIES?
@edfe66a5, it's important to note that tax laws vary by country, so it's difficult to give a definitive answer without knowing your country of residency. However, in general, capital gains tax is typically owed on the increase in value of an asset between the time it was acquired and the time it was sold or exchanged. This applies to both cryptocurrencies and fiat currencies. So, if you bought dollars at a discount and then spent them in the USA a year later, you may be subject to capital gains tax on the difference between the purchase price and the value at the time of spending. Again, this may vary depending on your country of residency and its tax laws.