BitCoinNutJob (OP)
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May 28, 2014, 10:08:39 AM |
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Planning on buying a house in the UK with bitcoin when it goes to the moon in next price bubble. Buying with bitcoin will mean avoiding tax vs cashing out bitcoin before purchase in UK im pretty sure?
Im imagining issues of:
1.) Estate agents will still assume bitcoin is retarded money :/
2.) Negotiating for a lowball price will be harder with bitcoin
3.) General lack of choice, we need ebay to accept bitcoin or like a bitpay for property
Any tips about how to go about the procedure, has anyone bought a property with bitcoin? (if UK great!)
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greenlion
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May 28, 2014, 10:53:16 AM |
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Buying with bitcoin will mean avoiding tax vs cashing out bitcoin before purchase in UK im pretty sure?
I am not specifically knowledgeable about UK tax law, but I would pretty much guarantee you that it doesn't necessarily have to be a cash sale to qualify as a capital gain. You would most likely owe on the difference between the fair market value of the house on the day of purchase versus the basis price of your Bitcoins. |
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cowandtea
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May 28, 2014, 12:27:52 PM |
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Planning on buying a house in the UK with bitcoin when it goes to the moon in next price bubble. Buying with bitcoin will mean avoiding tax vs cashing out bitcoin before purchase in UK im pretty sure?
Im imagining issues of:
1.) Estate agents will still assume bitcoin is retarded money :/
2.) Negotiating for a lowball price will be harder with bitcoin
3.) General lack of choice, we need ebay to accept bitcoin or like a bitpay for property
Any tips about how to go about the procedure, has anyone bought a property with bitcoin? (if UK great!)
I dont think using Bitcoin would let you avoid tax, they will use it to calculate the actual value in USD and still tax you. |
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Predatorian
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May 28, 2014, 12:34:37 PM |
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I'm pretty sure u can't avoid tax even if u use btc to buy a house.
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BitCoinNutJob (OP)
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May 28, 2014, 04:45:28 PM |
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ok then shit lol, thats kinda odd imo. If my GBP raises in value + housing stays same price i dont get capital gains tax if i buy a house.
guess i might aswell cash it out before i buy, oh well.
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Ron~Popeil
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May 28, 2014, 05:18:27 PM |
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They will always get their taxes. You can use BTC for small purchases and avoid taxation pretty easily but something like that with a big purchase with lots of public records can get you in trouble.
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nkocevar
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May 28, 2014, 05:25:21 PM |
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*Insert Bitcointrepeneur thought*
BitEstate: The Housing Market run fully in bitcoin! Come browse our houses today, and pay in bitcoin!
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BitCoinNutJob (OP)
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May 28, 2014, 05:29:19 PM |
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*Insert Bitcointrepeneur thought*
BitEstate: The Housing Market run fully in bitcoin! Come browse our houses today, and pay in bitcoin!
I like the idea, but that was before i understood tax. Not sure now. Should imagine the next few years will be the best time for that business. |
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waldox
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May 28, 2014, 05:50:22 PM |
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home sellers accepting bitcoin using bitpay/coinbase?
sounds crazy but i like it
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keithers
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This is the land of wolves now & you're not a wolf
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May 29, 2014, 04:38:54 AM |
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This won't really work in the United States (if you are trying to use BTC in association with any type of conventional or FHA type loan). You would have to find a seller that is willing to accept all BTC, or you would have to convert your BTC to fiat, and pay all cash.
Fannie Mae and Freddie Mac do not consider BTC to be liquid assets useable in correlation with loans.
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BitCoinNutJob (OP)
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May 29, 2014, 07:22:04 AM |
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Something i thought of is if the BTC was "won via gambling" and then you buy a house well thats non taxable in UK no?
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ranlo
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May 29, 2014, 07:30:55 AM |
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This won't really work in the United States (if you are trying to use BTC in association with any type of conventional or FHA type loan). You would have to find a seller that is willing to accept all BTC, or you would have to convert your BTC to fiat, and pay all cash.
Fannie Mae and Freddie Mac do not consider BTC to be liquid assets useable in correlation with loans.
Is there an official statement on this or just personal knowledge? This seems a bit odd considering the push towards making it a currency. And it is really liquid, so much as online-only bank accounts (HSBC comes to mind) are. |
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Benjig
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May 29, 2014, 07:49:39 AM |
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home sellers accepting bitcoin using bitpay/coinbase?
sounds crazy but i like it
In fact there are real people accepting bitcoin for their villas/ hauses on bitpremier, most of them are really expensive but they accept bitcoin itself not need of bitpay or any other product like that. |
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omehenk
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May 29, 2014, 08:04:09 AM |
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Its mebe not a good time to buy a house IN the UK ATM. With or without bitc.  Or u like buying on the top off a bubble then go for it.  H |
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BitCoinNutJob (OP)
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May 29, 2014, 09:58:30 AM |
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Its mebe not a good time to buy a house IN the UK ATM. With or without bitc. Or u like buying on the top off a bubble then go for it. H Well yes it looks kinda bubble but im still waiting for the crash, looks more like it will stagnate for many many years? the government doesnt want it to crash. All i see is housing programs all over UK TV. Whats going to cause the crash and when you think? Also % wise how big a crash? i remember max kieser tweeted a few months back to get ready for 50% house crash in UK in 2014 < this would be amazing. My rent is like 600pcm, which i been paying for nearly 10 years now, fed up with it. But im looking into living on a boat also  |
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nkocevar
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May 29, 2014, 10:51:04 AM |
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home sellers accepting bitcoin using bitpay/coinbase?
sounds crazy but i like it
In fact there are real people accepting bitcoin for their villas/ hauses on bitpremier, most of them are really expensive but they accept bitcoin itself not need of bitpay or any other product like that. The thing is what you already said... They are expensive. We need like 100-250k homes on a market. In doing so it will show that the average person can and is willing to sell their house for bitcoin and just not rich people. |
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Trading
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Nothing like healthy scepticism and hard evidence
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May 30, 2014, 02:24:48 AM |
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To buy real estate, I think you have to register the property (it's in your own interest, at the Land Registry for England and Wales) and that act implies payment of taxes related to the transfer of real property (stamp duty of 4%?), no matter the mean of payment you used.
But do your home work.
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gondel
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May 30, 2014, 12:24:30 PM |
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I am not sure, but sometimes in my country if you want to hide some taxes you just sign in the contract that you sold or bought something very expensive for 1$ and that is |
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EricTyle
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May 30, 2014, 05:34:06 PM |
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Its mebe not a good time to buy a house IN the UK ATM. With or without bitc. Or u like buying on the top off a bubble then go for it. H Well yes it looks kinda bubble but im still waiting for the crash, looks more like it will stagnate for many many years? the government doesnt want it to crash. All i see is housing programs all over UK TV. Whats going to cause the crash and when you think? Also % wise how big a crash? i remember max kieser tweeted a few months back to get ready for 50% house crash in UK in 2014 < this would be amazing. My rent is like 600pcm, which i been paying for nearly 10 years now, fed up with it. But im looking into living on a boat also You don't want to live on a boat. Water leaves no legacy. You live by water, you die by water. She provides, and then she takes you. Buy an island for like 50k-100k on the next bubble, pay some locals good money (still cheap money) to build you a nice open floor plan, and enjoy your newly built house on an island named Satoshi Island |
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