CoinVoice recently learned that, according to Decrypt, the American chain restaurant Steak'n Shake has started accepting Bitcoin as a payment method, but tax experts remind consumers to be aware of the related tax risks. According to the Internal Revenue Service (IRS) regulations, cryptocurrency is considered property rather than currency, and any transaction using Bitcoin to purchase goods is regarded as a taxable event.
Coinbase's Vice President of Tax, Lawrence Zlatkin, explains that when consumers use Bitcoin to purchase goods, they need to calculate the difference between the acquisition price of Bitcoin and its market value at the time of use as capital gains or losses, and pay the corresponding taxes to the IRS. Experts recommend that consumers keep all transaction records and choose a consistent method of calculation for tax reporting.
Although the IRS typically does not audit taxpayers for small transaction omissions, there is still a risk as centralized exchanges report more user transaction data to the IRS. Using stablecoins that are pegged to the dollar 1:1 to purchase goods does not incur tax risks. [Original link]
