Steak'n Shake accepts bitcoin payments, experts warn consumers of tax risks

According to Decrypt, the US restaurant chain Steak'n Shake recently started accepting bitcoin as a payment method, but tax experts have warned consumers to be aware of the relevant tax risks. According to the Internal Revenue Service (IRS), cryptocurrencies are considered property rather than currency, and any purchase of goods using bitcoin is considered a taxable transaction.
Lawrence Zlatkin, vice president of taxation at Coinbase, explained that when consumers use bitcoin to buy goods, they need to calculate the difference between the purchase price of bitcoin and the market value at the time of use as a capital gain or loss, and pay the corresponding tax to the IRS. Experts recommend that consumers keep records of all transactions and choose a consistent calculation method for filing taxes.
While the IRS typically does not audit taxpayers for small transaction omissions, the risk remains as centralized exchanges report more user transaction data to the IRS. Purchases using stablecoins pegged 1:1 to the dollar do not create tax risk.