Get a passport, pay crypto, live tax-free?
July 22, 2021. Summarized by summa-bot.
Compression ratio: 14.4%. 1 min read.
The U.S. Internal Revenue Service is still very much on the hunt for taxpayers not paying taxes on crypto.
Even paying taxes in crypto can trigger taxes.
If you bought the crypto for $5,000 the day you pay your taxes, there’s no gain.
Paying employees or independent contractors in crypto results in taxes to them when they receive it.
And when you pay them, you too can have a tax hit since, on your side of the equation, you just sold your crypto.
You can give crypto as a gift, and it doesn’t trigger income taxes.
If you give crypto to a qualified charity, you should normally get an income tax deduction for the full fair market value of the crypto.
Related: Your crypto taxes can be donated to charity instead
If the latter, one might expect the IRS to say that using appreciated crypto for the purchase triggers U. S. taxes.
Remember, the IRS is still very much on the hunt for taxpayers not paying taxes on crypto.
But heck, if you do have to pay exit tax, perhaps you could pay with crypto?