Anyone buying a Tesla using bitcoin triggers a 1099 from the IRS and are hit with 20% capital gains tax on the sale. Bitcoin is considered property and is taxed when you sell it. I don’t think Elon Musk or any of these bitcoin cheerleaders even considered this! This makes buying a Tesla even more expensive.
Is Tesla even issuing 1099’s for sales with Bitcoin?? If not they are breaking the law.
“CNBC reported that Teslas purchased with Bitcoin might come with “big tax bills.” The Internal Revenue Service (IRS) treats virtual currency as property for federal tax purposes in the United States, as per Publication 544. As such, capital gains taxes will apply to the purchase of Tesla cars bought with Bitcoin. However, the amount a person will be taxed might differ and depend on when they purchased their Bitcoin.”