Buying Coffee With Bitcoin Is a Tax Burden: Cato

With the proliferation of crypto spending debit cards, it’s easy enough to buy a cup of coffee with your bitcoins. The problem is that the purchase comes with a huge tax headache. Crypto sales of any kind, including using bitcoins for purchases, are treated as capital gains for tax purposes. So if you buy that cup of coffee every day, you’re looking at over 100 pages of tax forms, according to Nicholas Anthony, a research fellow at the Cato Institute, a libertarian think tank. Saying “the process is almost tailor-made to discourage the use of alternative currencies,” Anthony noted that “capital gains taxes require you to tell the Internal Revenue…