Can a store offer to load a gift card with crypto? How does it affect taxes?
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2Taxes for whom? The store, the person loading the card, or the person using the card? Does the card hold crypto, or is a conversion done at the time of purchase? This will depend on the country.– mhoran_psprepJan 23 at 19:05
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@mhoran_psprep the customers in the US– Ilya GazmanJan 23 at 19:06
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I think my question is why would a store offer a crypto gift card? Unless they charge for the service, they don't make any money. Other gift cards are purchased by the store at a discount from face value, which is covered by the issuing company's advertising budget. Unless someone is similarly willing to pay you to sell crypto, why would you bother?– keshlamJan 24 at 17:58
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1 Answer
Can a store offer to load a gift card with crypto?
Of course.
How does it affect taxes?
Depends on the country's laws. In the US, crypto is treated as an asset, so any disposition would be a taxable event. That means that the customers would need to track their cost basis, report the disposition, and generally the gift card becomes just another electronic wallet.