Would love for some one help me out on this. This is for person living in the states.
I want to buy a loaded casacius coin 1.1 btc. If I purchase it and the seller most likely sells my btc
The following day. Would I pay capital gains tax on the 1.1 or does the buyer pay it real confused not a tax person.
I'm not a tax expert, but the IRS is pretty clear on this subject. You must pay capital gains tax on the difference in the value of 1.1 BTC between when you bought it and when you exchanged it for the Casascius coin. It doesn't matter what the seller does with your 1.1 BTC.
Q-6: Does a taxpayer have gain or loss upon an exchange of virtual currency for other property?
A-6: Yes. If the fair market value of property received in exchange for virtual currency exceeds the taxpayer’s adjusted basis of the virtual currency, the taxpayer has taxable gain. The taxpayer has a loss if the fair market value of the property received is less than the adjusted basis of the virtual currency. See Publication 544, Sales and Other Dispositions of Assets, for information about the tax treatment of sales and exchanges, such as whether a loss is deductible.
Q-7: What type of gain or loss does a taxpayer realize on the sale or exchange of virtual currency?
A-7: The character of the gain or loss generally depends on whether the virtual currency is a capital asset in the hands of the taxpayer. A taxpayer generally realizes capital gain or loss on the sale or exchange of virtual currency that is a capital asset in the hands of the taxpayer. ...
Note: the "fair market value" of the Casascius coin is assumed to be what you paid for it.
I purchased the coins from an exchange won’t the exchange report that I sold it to someone else?
The exchange may report that you withdrew the 1.1 BTC. But it doesn't necessarily know what you did with it, and it doesn't change anything.
