Sorry if this is in the wrong place or asked before. If so please move / point me to the right post!
So not sure if I understand completely, but are you only taxed on your Gains once you convert to USD or other fiat? I am located in the USA, so US dollar is my main concern here.
Lets say I have Bitcon and purchase a Visa Gift Card. Since I paid for the card in BTC, am I liable for any taxes? If theres an attorney in NY/NJ I would be willing to come to your office to discuss this as well as a few other questions I have about BTC and taxes / business advice I am looking for.
Thank you,
Kosta
Nope, you need to pay tax on any appreciation of the coins when you spend them!
So in your example, of course you would owe taxes. Look up the laws regarding bartering if you don't believe me.
Otherwise everyone would just use bitcoins to buy gold and then sell the gold to avoid taxes. The answer is that you can't avoid taxes. You might get away with it but if you get caught, you'll be in serious trouble.