Use TenX Pay Visa to legally avoid Capital Gains Tax in the US.

in cryptocurrency •  7 years ago 

Spending Crypto while its Crypto at under $600.00 US is a Capital Gains Tax loop hole by law!

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So as you can see below when making or accepting payments in Crypto that are under less than $600.00 US, there is no tax liability. What does this have to do with TenX Pay? If you receive the TenX Pay Visa and link it to your crypto for spending and use is exclusively for purchases under $600.00 US, you can by word of law, avoid paying capital gains taxes on your Crypto earnings this way. TenX Pay boasts the only card that truly lets your spend your Crypto as Crypto and the convention to FIAT is not done on your end, thus according to the excerpt below you would be in compliance with the US tax law. I have included the whole document for your convenience.

IRS Form n-14-21, retrieve- here https://www.irs.gov/pub/irs-drop/n-14-21.pdf
Excerpt "
Q-12: Is a payment made using virtual
currency subject to information reporting?
A-12: A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property. For example, a person who in the course of a trade or business makes a payment of fixed and determinable income using virtual currency with a value of $600 or more to a U.S. non-exempt recipient in a taxable year is required to report the payment to the IRS and to the payee. Examples of payments of fixed and determinable income include rent, salaries, wages, premiums, annuities, and compensation. Q-13: Is a person who in the course of a trade or business makes a payment using virtual currency worth $600 or more to an independent contractor for performing services required to file an information return with the IRS?
A-13: Generally, a person who in the course of a trade or business makes a payment of $600 or more in a taxable year to an independent contractor for the performance of services is required to report that payment to the IRS and to the payee on Form 1099-MISC, Miscellaneous Income. Payments of virtual currency required to be reported on
Form 1099-MISC should be reported using the fair market value of the virtual currency in U.S. dollars as of the date of payment. The payment recipient may have income even if the recipient does not receive a Form 1099-MISC. See the Instructions to Form 1099-MISC and the General Instructions for Certain Information Returns for more information. For payments to non-U.S. persons, see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

Disclaimer- I am not a tax lawyer or accountant of any kind, I am just a guy good at doing research and with a normal level of reading comprehension skills. As always do your own research but my feelings are that, that document is fairly clear "on the point of spending digital currencies anyway". As always comments welcome, and let me know if you follow me, I will follow you back!

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That’s great information. I was wondering about that and am wondering when we can get a card in the US.

I was looking for the info for myself then I thought, why not share it?

I am US & have a Centra Card coming to me in Jan. They partnered up with US banks here to get the Visa/Mastercard [which depends on your state]...kind of piggybacking off the banks but it works for us here in the USA. The ICO just ended recently (how I got my card) but if you look them up I'm sure they'll say how to go about getting one on their website.
Also...added bonus....it's more anonymous than Monero & for me any of the "privacy" coins is a sure bet on that feature alone...2nd bonus- it holds 8 currencies in it's wallet so you can spend from any of them. I'll stop now as I'm not getting a commission or anything, just an honest belief in this product ;)

Thank u so much for your reply. Yes, I guess I’ll have to check out Centra until TenX work out their US kinks. Much mahalo. Aloha @leximiss!

The card is coming to the US soon, big announcement coming on Christmas, big news also they will be issuing cards world wide first quarter 2018.

Awesome information 👍
Thank you very much!

My Pleasure, like I was saying to someone else. I had to find the info than I figured, why not share it! Please follow for more great articles like this one! I am following you!

  ·  7 years ago (edited)

Thanks for taking the time to find and post. You got my upvote! :)

Please follow so you don't miss my next blog!

Already following you :)

:) thanks for following my blog! Any feedback?

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To me it looks like you can avoid taxes if you spend less than $600 per year in cryptos. The answers to both questions specifies "$600 or more in a taxable year." I'm trying to figure this out and it's eating my brain.

600 to an independent contractor in a year. So if you spend 599 at kmart and 599 at walmart and 599 at BJs etc. Also it seems like doing this will be way to complicated to trace. I am not a tax advisor, do what you think is best, I will be spending what I can this way to offset cap gains tax.

If that's correct, then why is there a Bill in the house to allow purchases of less than $600 using cryptocurrency without capital gains tax? I'm no tax professional, but I think you'd better consult one. You could be setting yourself up for a big problem in the future. Good luck!

I am not a tax professional, I stated that and I included the bill for anyone to read.