Using Bitcoin to pay for coffee at Starbucks might come with some difficult implications as far tax filings are concerned.
Increased Bitcoin Tax Filing Palaver
As reported by Bitcoinist, part of the Bakkt launch will see the adoption of Bitcoin payment for coffee at Starbucks. Reports indicate that Starbucks had received a significant stake in Bakkt in exchange for allowing people to buy coffee with BTC.
While the news signals a significant breakthrough in cryptocurrency adoption on the retail scene, commentators say there are potentially massive tax implications. Given that the Internal Revenue Service (IRS) classifies Bitcoin as property, its potential use at Starbucks would mean calculating capital gains tax for every purchase.
Commenting on the issue to MarketWatch, James Foust of Coin Center, said:
If you were to use bitcoin to buy coffee, it is technically feasible, but it would be extremely burdensome for tax purposes. You’d need to work out the fair market value [of a bitcoin] at the time [of a coffee purchase]…