Road to Spending: Cryptocurrency

[Single_Malt]

I'll certainly be opening accounts in my wife's (and possibly daughter's) names in order to funnel funds out of crypto. If it's good enough for our MPs...

[Raz]

6 hours ago, zerpdigger said:

lol no, you have to pay taxes on every spend, as it counts as a trade -- in such case one had better keep copies of all the transactions

ill give you an example, in say, the uk, you'd pay (to simplify things) 20% capital gains tax upon conversion to GBP fiat, but, if you just decided to spend it, say, on some kind of magic XRP bank card, well, it doesnt matter whether you are paying for your groceries in XRP direct (unlikely but still) or whether it "instantly" converts into GBP to pay for them, either way it's a conversion or aka "crystallizing a gain" at the point of purchase, and CGT is still owed, e.g. 20% (depending on a few things)

One idea I could see happening is similar to taxable amounts of income. If you earn less than a certain amount of income then you pay no tax, at least in the US. Same with converting currencies. I could easily see a threshold where one pays no tax for purchases under a certain amount per year. Maybe it’s $5,000 or maybe 10,000, who knows. But there is plenty of precedence for this and I believe could be in play.