THELOGICALINDIAN - Using Bitcoin to pay for coffee at Starbucks ability appear with some difficult implications as far tax filings are concerned
Increased Bitcoin Tax Filing Palaver
As appear by Bitcoinist, allotment of the Bakkt launch will see the acceptance of Bitcoin acquittal for coffee at Starbucks. Reports announce that Starbucks had accustomed a cogent pale in Bakkt in barter for acceptance bodies to buy coffee with BTC.
While the account signals a cogent advance in cryptocurrency acceptance on the retail scene, commentators say there are potentially massive tax implications. Given that the Internal Revenue Service (IRS) classifies Bitcoin as property, its abeyant use at Starbucks would beggarly artful capital assets tax for every purchase.
Commenting on the affair to MarketWatch, James Foust of Coin Center, said:
Starbucks barter who pay with Bitcoin will accept to accumulate receipts or some almanac of acquirement to aid in their calculations appear tax filing season. Given the already annoying attributes of cryptocurrency tax filing, such an added accountability could acutely bassinet adoption.
Working out the Kinks of Bitcoin Adoption
Given the abeyant implications of BTC-enabled payments at Starbucks, some experts accept that modalities should be put in abode to advice (and not hinder) such adoption. One accessible agency of accomplishing such an aftereffect would be to adjust cryptocurrency tax laws.
The IRS could actualize exemptions for cryptocurrency purchases, abnormally those ambidextrous with microtransactions. The tax bureau could acquaint a reasonable high cap for such transactions, acceptation that purchases beneath that akin aggregate a write-off for tax purposes.
Highlighting some of the accessible accomplish that could be taken, Coin Center controlling Jerry Brito opined:
Do you anticipate added automated Bitcoin tax laws by the IRS could break the abeyant cephalalgia associated with application the cryptocurrency to pay for coffee at Starbucks? Let us apperceive your thoughts in the comments below!
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