Quote:
Originally Posted by mineistaken
I meant that when you gained that 1$ it was taxed before in some way. If you gained it via employment paycheck it means it was taxed, if you gained it by profiting from shares it was taxed and so on. So if you declare your bitcoins and pay taxes you don't have disadvantage vs paying in cash, because both times your "gain" was taxed.
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What happened prior to you earning or taking ownership to money or stock, investments is irrelevant. A share of google stock might have been bought, sold and paid taxes on 50 times prior to you taking ownership of it. All that matters is the profit earned from the point you purchase it.
My point is yes the money you spend in a bar is usually after tax. There is NO PAPERWORK needed for your purchase. A biotcoin on the other hand if it has appreciated in value since it's acquisition then technically tax is owed on that gain. You pay for your bar bill with cash money the transaction is over. You pay for your bar bill with a bitcoin you need to track and pay taxes on any gain. Cash is a much simplier transaction.
I am in no way saying bitcoins are or aren't a good investment. I'm saying using them to pay for small purchases requires bookkeeping that I personally feel isn't worth the time.
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