Is this a taxable event? Would you be required to pay the capital gains (if there are any. Most likely would be the case since btc has skyrocketed) to the IRS at the point you buy your tesla? If I bought one bitcoin when they were at 3K and went and bought a tesla, do I owe cap gains on the approx. 52K in gains?
no, not currently. same as stocks.
Yep
Only when you sell and realize the gain.
Yes. The IRS requires any - emphasis on ANY - bitcoin transaction be reported to the IRS. If you’ve owned the bitcoin longer than a year, you’re going to owe capital gains taxes on purchase (presuming of course your asset has appreciated since your initial investment).
I have no idea who the mechanics of the transaction are recorded by the dealership....but, I’m sur they’re recorded.
Yes. The IRS would treat it as taxable. Converting Bitcoin to the value of a Tesla in USD, then calculating the capital gain. So, if you have that much Bitcoin you’ve probably had it for a while, so assume your “cost” just went up 15%. Plus state tax.
Why you would trade in an asset that has an annual compound growth of 80% since 2013 to own a depreciating asset like a car is beyond me.