Friday, February 12, 2021

I want to use bitcoin as currency. What are the tax ramifications in the US?

Title basically. I currently buy Bitcoin from cashapp and store on electrum wallet.

I would like to use Bitcoin as currency so that instead of just buying in with what I can spare, I'm buying in with a larger portion of my income. (Not going all in).

With using Bitcoin as a currency each transaction where I convert Bitcoin to USD will potentially be a taxable event correct?

How is capital gains tax determined? Let's say I bought some coin at 18k then again at 25k then again at 40k. Now I make multiple purchases over a week at current value around 47k.


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