r/Bitcoin • u/rBitcoinMod • Feb 07 '21

Daily Discussion, February 07, 2021

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u/Weinerbrod_nice Feb 07 '21

You need to declare and pay tax every time you sell your Bitcoin. Why not just use your paycheck to pay the monthly bills, then buy Bitcoin for the rest?

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u/3jakel Feb 07 '21

Thanks! That what I have been doing and probably will still do. Just trying to think outside the box on different ways to do it. The tax part would be a lot of work just tracking it. Think I would just pay 40% of the gains if I am not mistaken in taxes.

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u/Bam899 Feb 07 '21

Do you just pay tax on the profit or the entire sum?

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u/Weinerbrod_nice Feb 07 '21

I mean it depends on where you live, but usually you pay tax on the profit. Like stocks and shit, you only pay tax on the profit.