Sunday, December 13, 2020

BlockFi Bitcoin card Tax Issues

So, this BlockFi card gives you 1.5% back in Bitcoin.

I would assume, this is a taxable event, given how bitcoin is property. That means

1) You are taxes on that 1.5%
2) You have to track your basis, which is not going to be fun if you use your card 20-100x per month.

I would recommend Fidelity's card...you get 2% cashback. It goes straight into your brokerage account, IRA, or Roth IRA (my choice). From there, you can buy GBTC. While this is heretical to some of the NYKNYC crowd, you will come out ahead.


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