Hello, this is Jeff from CryptoTrader.Tax and today I am answering the question: if I use crypto for purchases, is it a taxable event?
The short answer is yes. Whenever you use crypto for purchases, it is considered a taxable event. So if you use crypto to purchase goods or services, it is considered a disposal of your crypto and will need to be reported on your taxes.
This means that if you use crypto to purchase something like a car, you will need to calculate the fair market value of the crypto when you made the purchase and report the difference as a capital gain or loss when you file your taxes.
It is important to note that this applies to all purchases, whether it is for a physical item or for something intangible like a service or a digital asset.
So if you use crypto for purchases, make sure to report the transaction on your taxes.
Thanks for watching and if you have any questions about crypto taxes, feel free to reach out to us.
