Friday, January 8, 2021

You can legally prevent bitcoin tax events if you pay only with Lightning Network

With the Lightning Network you open a channel on the blockchain. The amount of BTC you have left after you close the channel is the one that is taxed, because only then it is recorded on the blockchain. But you can keep your LN channel open forever, so basically you'll never trigger a tax event...

Edit: this isn't advice, but merely an observation


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