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TagsWhat are the tax implications of buying real estate with bitcoin?
saifwefiNov 30, 2021 · 3 years ago1 answersI'm considering buying real estate with bitcoin, but I'm not sure about the tax implications. Can you explain what I need to know about taxes when purchasing real estate with bitcoin?
1 answers
- Buying real estate with bitcoin can have tax implications that you need to be aware of. The IRS treats bitcoin as property, so any gains or losses from the sale of bitcoin are subject to capital gains tax. If you bought bitcoin at a lower price and then used it to buy real estate at a higher price, you would need to report the capital gains and pay taxes on the profit. It's important to keep track of your bitcoin transactions and maintain detailed records. Consulting with a tax professional can help you navigate the tax implications and ensure compliance with tax laws.Nov 30, 2021 · 3 years ago
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