Wednesday, December 1, 2021

Where Can You Pay With Cryptocurrency

- Advertisement -spot_img
- Advertisement -spot_img

The Basics Of Crypto Taxes

Welto How to Pay Bills with cryptocurrency

In the U.S., cryptocurrencies like bitcoin are treated as property for tax purposes.

Just like other forms of property like stocks, bonds, and real-estate, you incur capital gains and capital losses on your cryptocurrency investments when you sell, trade, or otherwise dispose of your crypto.

For example, if you bought $10,000 worth of bitcoin in October and sold it two months later for $12,000, you would incur a $2,000 capital gain from the sale of your bitcoin .

Depending on what tax bracket you fall under, you will pay a certain percentage of tax on this capital gain. Tax rates fluctuate based on your personal tax bracket and whether the gain was short term or long term .

Outside of buying, selling, and trading, if you earn cryptocurrenciesâwhether through a job, mining, staking, airdrop, or interest from lending activitiesâyou are liable for income taxes on the US Dollar value of your crypto earnings.

We will walk through examples for all of these scenarios further below.

How Cryptocurrency Gifts Are Taxed

If you give cryptocurrency as a;gift;to someone other than your spouse or civil partner, you will have to figure out the market value of the crypto on the date that it was given away as a gift. This will be considered as sales proceeds for Capital Gains Tax purposes.

Importantly, if income tax has already been charged on the value of the tokens that are gifted, section 37 Taxation of the Capital Gains Tax Act 1992 will apply. This basically means that the “sales proceeds” will be reduced by the amount that has already been subject to income tax, and then be subjected to CGT.

EXAMPLE

Trading Cryptocurrency For Another Type Of Cryptocurrency

Generally, when you dispose of one type of cryptocurrency to acquire another cryptocurrency, the barter transaction rules apply. You have to convert the value of the cryptocurrency you received into Canadian dollars. This transaction is considered a disposition and you have to report it on your income tax return. Report the resulting gain or loss as either business income or a capital gain .

Read Also: How To Send Money To Bitcoin Wallet

Bitcoin>online Casinos That Accept Bitcoin

The casino industry always responds positively to the innovations in gaming and financial industries, and this includes their acceptance of bitcoin as a payment method. Below are the few popular casinos that accept the new form of payment.

Cloudbet Casino

Operated by Betsoft gaming software, Cloudbet Casino allows users to pay through bitcoin. This software allows users to enjoy a completely immersive experience from their mobile device in the comfort of their home.

BetChain

Fully regulated and licensed under the regulations of Curacao, BetChain is highly regarded by users for providing some of the best slot machine games. It is one of the prominent names in the casino industry that accepts bitcoin payments.

Oshi Casino

The most important thing about Oshi Casino is its SoftSwiss Casino software, which is designed to support Bitcoin-based gambling. They offer several slot machines and other casino games along with welcome bonuses and rewards for loyal and new players.

mBit Casino

mBit Casino is fully licensed and regulated, offers numerous games and slot machines, and accepts bitcoin as a payment method. It does not accept fiat currencies. Therefore, if you want to enjoy games and slot machines, you must convert fiat currency into bitcoin.

How To Pay With Bitcoin

The Pros and Cons of Cryptocurrency

Bitcoin is the most popular cryptocurrency on the internet. Its easy to use and widely available to purchase with your credit card online. If youre already familiar with Bitcoin and already have a Bitcoin wallet or app, simply checkout as you normally would and choose Bitcoin as your payment method.

If youre not at all familiar with Bitcoin and youre curious to try it as a payment, take a look at the frequently asked questions below:

What kind of benefits or perks do I get from paying with Bitcoin?

We truly believe in Bitcoin as a currency of the future. If you decide to pay with Bitcoin, we are offering many perks and free gifts as a reward for paying with cryptocurrency.

For a full list of the current Bitcoin promotions and special offers, check out the Promotions & Special Offers page.

What is cryptocurrency and what is Bitcoin?

Cryptocurrency is secure digital money for the internet. Bitcoin is the most popular cryptocurrency. You can pay without handing out sensitive financial information, and you dont need an account.

What cryptocurrencies do you accept?

Currently we accept BITCOIN , MONERO , LITECOIN , and ETHEREUM . If there is another type of cryptocurrency that you would like to pay with, please contact us and we will do our best to accommodate you.

What are some the fastest and easiest ways to get Bitcoin?

BEST PLACES ONLINE TO GET BITCOIN QUICKLY

  • SUMMARY: Takes only minutes to sign up, Buy Bitcoin with Credit Card / Debit Card / Bank Transfer

Don’t Miss: What Is My Bitcoin Address Coinbase

How Is Cryptocurrency Taxed In Canada

Barry Choi129 **This post may contain affiliate links. I may be compensated if you use them.

**Note, I am not an accountant, nor am I an expert on cryptocurrencies. You should seek the advice of an accountant with experience in cryptocurrencies if you have any serious questions or concerns.

Are you wondering how is cryptocurrency taxed in Canada? With the explosion of Bitcoin, Ethereum, and whatever other cryptocurrencies that currently exist or will come to exist, many people are starting to invest. Theres money to be made , and you need to pay your fair share of taxes.

If you invested early, you could have easily become a millionaire. As with any hot investment, many Canadians are trying to jump on the bandwagon so they too can make a fortune. Regardless of how much profit these investors make, theyre going to have to eventually deal with taxes. Below youll find some common questions and scenarios when it comes to cryptocurrencies in Canada and how to deal with them. If youre new to cryptocurrency, be sure you read this post on the 7 things you need to know about cryptocurrency before you start investing.

Bitcoin>online Holiday Companies That Accept Bitcoin

Online holiday companies are not lagging behind other industries in adopting cryptocurrencies. The list of online holiday companies that accept digital coins is below:

Expedia

Expedia Group is one of the largest American global travel technology companies. It primarily uses its website as a travel fare aggregator and travel metasearch engine. It supports bitcoin along with other payment systems.

Berkeley Travel

A London based luxury travel agency, Berkeley Travel offers highly exclusive holiday gateways. This company now accepts digital coins.

bitcoin.travel

An established travel site, bitcoin.travel allows customers to book their holiday packages and also provides suggestions for food, accommodation, and other traveling needs.

eTravelSmart

The online bus travel booking portal eTraveSmart accepts bitcoin payments through Unocoin.

Flyhi.fi

Flyhi, established in 2002 with ticket operation in 13 countries, is one of the best travel companies that accepts Bitcoin payments from clients for their flight reservations and tickets.

BTCTrip

BTC trip, a flight and hotel booking service provider, only accept payments in bitcoin. There are no intermediaries as they deal directly with transporters and hotels.Surf Air

Surf Air accepts several cryptocurrencies including Bitcoin, Ethereum, and Litecoin for memberships and charter requests.

9flats.com

The Berlin-based company, 9flats.com, accepts Bitcoin payments, but only for short-term home rentals.

You May Like: How To Predict Crypto Charts

Benefits Of Buying Bitcoin And Ether

Buying Bitcoin and Ether at CXI branch locations is a secure, trusted way to get access to digital currencies. CXI provides you Bitcoin or Ether;on a Cycle card, which you can use to pay for goods or extract to a digital wallet.;How can you;benefit;from digital currencies?;;

  • Seamlessly transfer money – Fast peer-to-peer payments, like handing cash over in-person.
  • Greater access to payments – A vast portion of the world’s citizens has limited or no access to payment systems like banks.
  • Independent and global – No central authority or government issues or maintains these cryptocurrencies.
  • Securely control and store value – All records are validated and encrypted on a blockchain.
  • Diversify how you hold funds – Similar to gas prices, their value can change a lot over time as supply and demand go up and down.
  • Pay for goods and services – More than 15,000 businesses worldwide accept Bitcoin.

Invest For The Long Term

5 Ways to Avoid Paying Taxes on Cryptocurrency Gains

Holding your cryptocurrency for the long run comes with real tax benefits. Remember, youâll pay a lower capital gains tax if youâve held your crypto for more than 12 months.

Of course, itâs important to remember that cryptocurrencies tend to be volatile. If youâre expecting a price drop in the next few months, it may be better to sell now than to wait. Still, the lower long-term capital gains rate should factor into your buying and selling decisions.

Don’t Miss: What Crypto Should I Buy Now

What Bills Can I Pay

You can use cryptocurrency to pay for a hugely diverse range of bills, including the following:

  • Electricity and gas bills
  • Health insurance premiums
  • Tax bills

Exactly what type of bills you can pay depends on what service youre using. For example, Coinsfer pays bills using a credit card, so you can use it to pay any bills that accept credit card.

Being A Victim Of Fraud

If your cryptocurrency is stolen/hacked, the HMRC does not consider this a disposal. That’s because the individual still owns the assets and has a right to recover them. As a result, no loss can be claimed. However, in case someone pays for crypto assets but doesn’t end up receiving any, they can claim a capital loss.

Similarly, an individual who pays for and receives crypto assets that turn out to be worthless, can file a negligible value claim to the HMRC and offset losses.

Recommended Reading: How To Buy Crypto With Amex

Why Crypto Exchanges Can’t Provide Accurate Tax Forms

This is where a big problem exists within the crypto tax space.

Cryptocurrency exchanges like Coinbase, Binance, and others do not have the ability to provide their users with accurate capital gains and losses tax reports. This is not a fault of the cryptocurrency exchange itself, it is simply a product of the unique characteristics of cryptocurrenciesânamely their transferability.

Because users are constantly transferring crypto into and out of exchanges, the exchange has no way of knowing how, when, where, or at what cost basis you originally acquired your cryptocurrencies. The exchange only sees when crypto appears in your wallet.

The second you transfer crypto into or out of an exchange, that exchange loses the ability to give you an accurate report detailing the cost basis and fair market value of your cryptocurrencies, both of which are mandatory components for tax reporting.

As you can see pictured below, Coinbase themselves explains to their users how their generated tax reports wonât be accurate if any of the below scenarios took place. This affects over two thirds of Coinbase users, which amounts to millions of people.

You can read more about the âcrypto tax problemâ in our blog post: Why Exchanges Canât Report Crypto Taxes.

Bitcoin Transactions Are Secure

Cryptocurrency Guide

Bitcoin is not physical currency. Therefore, it is impossible for thieves to palm it off the holder. Hackers can steal a persons cryptocurrency if they know the private keys for the wallet. However, with proper security, it is technically impossible to steal bitcoin. While there are reports of hacks at cryptocurrency exchanges, Bitcoins exchange has remained impervious to such breaches. Therefore, transactions conducted between two addresses are secure.

Read Also: How To Calculate Market Cap Crypto

Where Can I Find A Bitcoin Atm

Heres a complete list of Bitcoin ATMs around the world, courtesy of CoinATMRadar. Just find your location and see where the nearest Bitcoin ATM is to you.

If you are in the US, try out one of Coinflips ATMs that offers currently 10% off from the transaction fees if you are using 99BTC promo code.

The map also allows you to search for Altcoin ATMs if you want to buy/sell other cryptos. Each ATM takes a certain commission from the trade which varies from one device to another, so make sure youre aware of the fees which are usually stated on the machine.

Tapping Crypto For Loan Costs

Some surveys suggest nearly 10 percent of Americans have invested in cryptocurrency. Introduced a decade ago, Bitcoin remains the most well-known, but there are thousands of cryptocurrencies in circulation across the world.

When it comes to buying a home, qualified Veterans dont typically need a down payment because of their VA loan benefit. VA loans also limit what buyers can pay in closing costs.

But Veterans can build equity from the outset with a down payment, and who pays what in closing costs is always a matter of negotiation with the seller.

Veterans can tap into their crypto holdings to come up with that down payment and to cover closing costs in a VA purchase. But you cant just transfer some of your Bitcoin to a mortgage lender and call it a day.

Verifying assets is a key part of the underwriting process. Veterans will need to do a couple things in order for lenders to count digital currency as a legitimate asset.

The first step is turning that cryptocurrency into boring old U.S. dollars.

Read Also: How To Pay With Cryptocurrency

Pavilion Hotels & Resorts

As the latest company to permit crypto transactions, the Hong Kong-based Pavilion Hotels & Resorts group has also become the first international hotel chain to embrace virtual currency payments.

The group – which owns properties in Amsterdam, Madrid, Lisbon, and Rome as well as Bali and Phuket – will accept bookings using 40 different tokens, including Bitcoin and Ethereum from July through their partnership with payment platform Coindirect.

Applying For A Bitcoin Debit Card

How Much Tax Do You Pay On Cryptocurrency?

After youve decided which Bitcoin debit card works best for you, youll need to apply for a card. To use a Bitcoin debit card, there are a few steps youll need to take, including:

  • Creating a Bitcoin wallet
  • Buying Bitcoin from a reputable exchange
  • Connecting the card to a wallet
  • Funding the card
  • Using the card to make purchases

Some cards require users to validate their identity before being approved. Others require users to purchase a card or make an investment in the cards native currency. You can transfer Bitcoin from the debit card to fiat currency via an exchange or Bitcoin ATM.

Don’t Miss: Why Is Bitcoin Going Up

How Does The Gst/hst Apply To Cryptocurrency

Where a taxable property or service is exchanged for cryptocurrency, the GST/HST that applies to the property or service is calculated based on the fair market value of the cryptocurrency at the time of the exchange.

If your business accepts cryptocurrency as payment for taxable property or services, the value of the cryptocurrency for GST/HST purposes is calculated based on its fair market value at the time of the transaction.

Keep all records that show how you calculated the fair market value.

Claiming Losses For Defunct Coins / Crapcoins

With crypto assets that can fluctuate wildly, it’s not rare for someone to own cryptocurrency that has become worthless or of ‘negligible value’. In this case, the owner of the asset can file a;negligible value claim.

This claim treats the crypto assets as if they have been disposed of and re-acquired at the amount stated in the claim. This allows you to write off a major loss for an asset that is now illiquid.

The claim only needs to contain the name of the asset which is worthless now, the amount at which the asset should be treated as disposed of as well as the date of the deemed disposal. This claim results in a;loss;that can be offset against gains once it’s reported to the HMRC. The loss and negligible value claim can be made to the HMRC at the same time.

Don’t Miss: What Crypto Currencies To Invest In

Does Bitcoin Have A Debit Card

No, it doesnt. Bitcoin isnt controlled by any single centralized party, so it cant issue its own debit card. However, you can get a 3rd party prepaid debit card which you can load with Bitcoin and then buy almost anything.

While not many businesses accept payments in Bitcoin , most accept debit cards. With a Bitcoin debit card, merchants get paid in their own currency while you are charged in Bitcoin from your prepaid balance.

Keep in mind there are downsides. First, when using a Bitcoin debit card, youre basically giving someone else control over your coins .

Second, this service usually comes with a price. Every payment you make will often involve both processing fees as well as conversion fees for paying with a foreign currency.

Bitcoin>adult Websites That Accept Bitcoin

How to send and receive cryptocurrency

The interest for adult websites is ever increasing on the internet and bitcoin is proving to be true internet money. The list of adult websites where you can use bitcoin is below:

Naughty America

One of the leading adult entertainment providers, Naughty America offers high-quality porn content and operates more than 30 porn websites where they also accept bitcoin payment from subscribers.

PornHub

This popular adult entertainment website accepts Bitcoin and other cryptocurrencies such as Tron and ZenCash as a payment method for its premium membership.

Playboy Plus

Playboy, the popular media company that publishes Playboy magazine, now accepts bitcoin for its adult entertainment content for its website, Playboy Plus.

LiveJasmin

This adult entertainment website offers live streaming options and interactions with models. It accepts bitcoin as a payment option and has recently announced that they will be accepting different cryptocurrency payments in partnership with PumaPay on all recurring payments for their subscriptions.

You May Like: Should I Buy Bitcoin Or Bitcoin Cash

How To Calculate Gains And Losses

Say you have the following transaction history on Coinbase:

  • 1/1/20 – Buy 1 BTC for $12,000
  • 2/2/20 – Buy 1 BTC for $10,000
  • 3/3/20 – Buy 1 BTC for $8,000
  • 4/4/20 – Trade 0.5 BTC for 8 ETH â

With this transaction history, you first trigger a taxable event when you trade 0.5 BTC for 8 ETH. To calculate the gain/loss, you need to subtract your cost basis of 0.5 BTC from the fair market value at the time of the trade.

The question here is, what is your cost basis in the 0.5 BTC that you traded for 8 ETH? After all, you have purchased 3 different bitcoins all at different prices prior to this trade.

To answer this, you have to determine which bitcoin you are disposing of in this scenario.

To determine the order in which you sell various cryptocurrencies, accountants use specific costing methods like First-In First-Out or Last-In First-Out . The standard method is First-in First-out.

These costing methods work exactly how they sound. For First-In First-Out, the asset that you purchased first is the one that gets sold off first. So you are essentially disposing of your crypto in the same order that you first acquired them.

If we use First-In First Out for our example above, we âsell offâ that first bitcoin which was acquired at $12,000 on 1/1/20. The cost basis in this first bitcoin is $12,000, making the cost basis for 0.5 of this BTC $6,000 .

As denoted in the example, the fair market value at the time of 0.5 BTC at the time of trading was $4,000.

- Advertisement -spot_img
Latest news
Related news