Bitcoin Forum

I need to pay a builder 20K for a renovation. If i pay him in bitcoins I don't need to bother with capital gains tax, but he doesn't accept btc.

I need a way to make a one off payment to the builder where I pay bitcoin, and he receives cash, and he doesn't have to bother with registering with something like BitPay just for one job.

Is there a money order that accepts bitcoins? Is there a way to go from bitcoin>bank deposit without me having to convert the bitcoins myself where i would then need to mess with capital gains tax?

I found excash (https://www.exkash.com/) for bitcoin> bank deposit, but it looks very dodgy

for $20k amount.. sorry but there is no way for him to dodge taxes
by the way you wont have to worry about capital gains tax anyway.. because you "spending" rather than "receiving"

also with you putting $20k into a third party and him taking $20k out looks more dodgy then simply just paying him $20k direct

as for the builder.. whether he receives $20 direct or through third party its the same thing it will be declared as income for him

just pay him the $20k direct.

thanks for the reply! the builder will declare the 20K, his problem is he's 100% computer illiterate and can barely do online banking, so paying him in bitcoin is a bridge too far technically.

the problem for me is I only have 20k in bitcoins that I can pay him with (cash poor), and if i convert the bitcoins to cash through my regular exchange I'll get pinged for capital gains tax even if I send it to the builder 5 minutes later afaik. BUT, if I can pay him in bitcoins directly by some method I don't need to worry with CGT because I will not have converted bitcoins to cash myself.

It doesn't matter if you convert to dollars or not. You still have to report the difference in value even if you don't convert.

Sorry. I assumed U.S.A.

The only way around this that i think you could do would be going on local bitcoins and advertising that your selling bitcoins for cash. I doubt anyone will buy that many in one go though so it might mean doing a few trades to earn that much in cash but its doable its just going to take a while to get t6he trades done.

afaik that's not the law in Australia. Bitcoin is considered a 'personnel use' asset, so paying someone with bitcoins is treated the same as barter, so it's like I'm paying the builder by giving him an art work, or a piece of jewelry, or an expensive bottle of wine. I want to stay legal here, but under the law if I convert bitcoin to cash and pay the builder with the cash I have to pay capital gains tax (same as if I sold an expensive asset like an art work or jewelry or rare coin or stamp), but if I can pay him directly with bitcoins (legally a barter swap) I don't have to, so the perfect solution to pay a non-bitcoin user would be buying a money order for 20K with bitcoins.

I'm thinking maybe there's a business idea here - bitcoin money orders

The only way I guess to make it legal is to find someone in united States who wants to buy your bitcoins, that way he can deposit dollars in your bank account and your bitcoins to his wallet. Or find a trading platform who has gold and bitcoins In their site. You just need to convert your bitcoins to gold then sell your gold and you can now withdraw the cash in your country.

I will believe site  https://localbitcoins.com/ will be helpful for you ,i have not used till now ,but people on the forum and information on google search were mentioning that  but you need to find trustworthy person or else it will be difficult with that site. or you need to educate the builder on internet and creating wallet for him and then converting back to fiat money , wherever i believe to convert fiat money as it is big amount , i believe it requires your bank account  , tax my apply either for you or for your builder :)

Can't you do an OTC trade with a bitcoin company, like upload your 20k in bitcoin to a paper wallet & sell that paper wallet to a bitcoin using company.

Then give the builder 20k in cash?

You might need to trade your 20k in bitcoin slightly under market value to get the cash for it but this is the only way I can think of if the builder has no clue about bitcoin.

You could try & sell the 20k in bitcoin's for cash in one lump on localbitcoins in a face to face meet but I wouldn't recommend that.

Sorry for late reply (I'm building a house lol)

Thanks for the effort guys, but I think you're all missing the fundamental issue here.

I want to be legal and pay someone in bitcoins, but they don't have the means to accept bitcoins (i.e. they don't use a bitcoin payment processor that lets me pay in bitcoins, and they receive cash in their bank account), so I need a one-off equivalent of the service BitPay provides.

In my OP I mentioned 'money-order', and in days past that was a common way to pay someone using a payment method 'like' a cheque, even when you didn't have a cheque account yourself.  I want something similar for bitcoin - I want to pay the builder 20K in bitcoins using a service that's like BitPay, but just a one-off (like a money order is a one-off bank cheque).

The reason I want to do this is if 'I' convert the bitcoins to cash, then use the cash to pay the builder, I have to pay capital gains tax on the conversion, even if i only hold the cash in my bank account for a few minutes before I transfer it to the builder. That's the law in my country (i.e. bitcoin payments are exempt from capital gains tax, BUT, all conversions to cash are liable for capital gains tax).

So ... I want a one off BitPay styled bitcoin payment processor that's easy to use, like an old fashioned money order.

I'm thinking this might be a business idea ...

How did it turn out with the builder?  If you are still working on it, maybe you could use something like this site:
http://btc-e.com/
Deposit the btc, and have them wire the cash to him instead of you.  Would that work?

If you are serious about the BTC->money order business, message me.  I am thinking about it and that is how I found your old message.

Hurrican50



https://www.crypto-games.net?i=XhgvUKSYwM (https://www.crypto-games.net?i=XhgvUKSYwM)


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