Replying to Avatar micahcmiracle

Taxes on short-term gains are based on income and range between 10 and 37% of your gains at the time of disposal (when you spend it).

So if you buy $1000 of bitcoin on Jan. 1st at $100k per BTC and bitcoin goes up 10% before you pay off your credit card on Feb. 1 (let's assume you pay off $500 on your card and BTC is now 110k) then the 50 bucks of gains you made (simplified here) would be taxed at your income rate. If your income puts that rate at say, 24%, then you owe $12 to .gov.

You still did much better than paying your $500 in fiat when it was due. In fact, you end up with reducing what you've paid by $38.

If you have bitcoin that you've held for more than 1 year in Strike (or you transfer some to Strike), you could use that and pay less taxes.
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🇩​𝔢𝔠𝔢𝔫𝔱 🇼​𝔦𝔰𝔡𝔬𝔪 1y ago

Looks like it's ideal for long term gains paying off bills at a lower rate and less likely to be in the red with what you're paying bills with.

Hopefully they simplify the tax stuff for you and track the short vs long coins 🤙

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micahcmiracle 1y ago

I am going to do it with just short term gains and test it out for a few months. I can try to give updates here monthly without specifically stating my income and bill amounts.