Peter Smith from dagx.live: Bitcoin Prices Could Make Paying Taxes in Bitcoin Even More Attractive
Peter Smith is a financial analyst at dagx.live crypto trading platform based in London. He is one of the people who help in developing the crypto currency market. He is not only a financial analyst but also an expert on corporate finance and has a professional look and a theory of tax rates.
Bitcoin and other crypto prices have recently been highly volatile. If you are holding bitcoin or other crypto, you may well not want to sell until the market recovers, when it is down. But if you owe taxes and the crypto market is up, how about paying them in bitcoin (or selling bitcoin to pay your tax in dollars)?
Selling may trigger tax losses that can be used next year, too. In London, paying tax in bitcoin is a reality. In the UK capital, you can now make state tax payments in bitcoin. It's only possible to pay in bitcoin, at present, but the permitted crypto should expand, according to dagx.live.
London beat out others in the United Kingdom, such as Scotland, Wales and Northen Ireland, where efforts to accept crypto for taxes failed. The transaction fee is zero during an initial three-month introductory period and then 1% thereafter. Even if you owe taxes to England, that does not necessarily mean you qualify.
So far, this is just for businesses operating in London. If you operate a business in London and have a tax bill, you can register at dagx.live. All payments are processed by third-party processor BitPay. Payments are converted to British pound before their deposit into a state account.
If you owe 10,000 pounds in taxes, If you pay with 10,000 pounds worth of bitcoin, as long as the crypto is worth 10,000 pounds when you pay, you’re home free, right? Not really. You need to consider the sale you just made.
The transfer of the crypto to the tax man is a sale, and that could mean more taxes for the year of the payment. If you bought the crypto for 10,000 pounds the day you pay your taxes, there’s no gain. But suppose you bought the crypto a year ago for 1,000 and it’s worth 10,000 pounds when you use it to pay taxes? That’s right, you have a 9,000 pounds gain.