Quote from: a1 Hashrate LLC2022 on June 07, 2022, 07:24:41 PM

Quote from: LoyceMobile on June 07, 2022, 04:35:15 PM

If they add Bitcoin LN, their users will realize they don't need Paypal anymore

Wrong sellers will realize they don't need Paypal if they have a good reputation.

And buyers will need paypal when they do not trust a seller.

So there is room for both.

I want to follow up a bit I read a post which gave a pdf link to the new bill for btc gains.

there is a 200 usd exemption. I made this post on my main accounts difficulty thread.

Quote from: a1 Hashrate LLC2022 on Today at 01:27:45 AM

We will need to wait and see how this unwinds. BTW this bill that is up for passage for sale of BTC for cash or stablecoin

Has a $200 gains exception this is a federal bill.

https://www.lummis.senate.gov/wp-content/uploads/Lummis-Gillibrand-Responsible-Financial-Innovation-Act-Final.pdf

I read it a a real boost to btc

"SEC. 201. GAIN OR LOSS FROM DISPOSITION OF VIRTUAL CURRENCY.
(a) In General.—Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section:
“SEC. 139J. GAIN OR LOSS FROM DISPOSITION OF VIRTUAL CURRENCY.
“(a) In General.—Gross income shall not include gain or loss from the disposition of virtual currency in a personal transaction (as such term is defined in section 988(e)) for the purchase of goods or services.
“(b) Limitation.—
“(1) IN GENERAL.—The amount of gain or loss excluded from gross income under subsection (a) with respect to a disposition shall not exceed $200.
“(2) AGGREGATION RULE.—For purposes of this subsection, all dispositions which are part of the same transaction (or a series of related transactions) shall be treated as one disposition.
“(3) OTHER DISPOSITIONS.—For purposes of this subsection, subsection (a) shall not include dispositions in which virtual currency is sold or exchanged for cash, cash equivalents, digital assets (as defined in section 9801, title 31, United States Code), or other securities or commodities."

Quoted from link above

So if I buy a 1000 dollar miner using 801 worth of btc that went to up to 1000 it is a tax free gain.

Means a lot of book keeping.

It could also be I buy 800 worth of btc it goes to 999 and I buy a gpu.

It counts as no gain of the 199.

I could also have 400 in purchased btc and pay 599 for pc also no tax on that gain.

This is a big encouragement to making more purchases with btc.

Obviously you need to track the value of the btc you spend.

Now that paypal lets you pull btc from its account it will encourage spending some btc.

I am going to buy 100 in btc today on my paypal account knowing that if it goes up to 299 and I spend it it is a non taxable event.

-snip
...

[/quote]

So I now have $97.45 worth of btc it dropped since I paid 100 for it.

If that BTC goes to $299 I would be up 199 a fully exempted gain if I use that to buy gear from a seller like newegg.

This is quite a tax break if you understand it and use it properly. It ties in with paypal allowing btc withdrawal.

I have 3 accounts with paypal I could do 100 in all three and buy gear when the btc is worth 299 or I would get 597 dollars of tax free gains.

So it helps a small btc investor.

Note all USA tax laws and the fed law is not passed as of today.