Using crypto is the fastest, easiest, most cost-effective, and most innovative way to purchase a property, but what does that imply for taxes? Many speculate about the complications of crypto payments for real estate purchases, but that’s before learning about ProperT.
What taxes apply when paying for a home with crypto?
According to an article published by Mansion Global, when purchasing a home with crypto, the settlement is not actually made in crypto, according to Max Dilendorf, a partner at Dilendorf Law Firm, who specializes in cryptocurrency and digital assets.
“We represent many clients in these kinds of transactions, and 99% of them would never be structured using Bitcoin,” he said. “It just makes more sense to convert it to U.S. dollars.”
Supposedly it’s because it’s just too complicated… or at least it seems. The main issues include the seller not being equipped to accept the cryptocurrency, nor do the necessary KYC check, a type of identity verification, or anti-money-laundering checks.
Buyers in the US are accountable for capital gains taxes on profits made with cryptocurrency and are treated like property.
Although more real estate agents boast about accepting crypto, Mr. Dilendorf said, “that’s just a marketing thing.” And although deals in cryptocurrency may become more popular in the future, it’s a slow transition.
Although this seems to be a common misconception about purchasing a real estate with crypto, we beg to disagree with Mr. Dilendorf. There is very little information about the crypto market and purchases for real estate, and the mainstream media likes to paint it as a scheme or something for the future to worry about.
The real issue with crypto facilitation for payments comes with its fungibility and acceptability, which has been no longer an issue for some time now. There are a lot of payment options that remove the volatility of direct crypto payments.
ProperT partner, ForumPay, is the perfect example. ForumPay makes crypto transactions worry-free. Their technology enables payments with a plethora of cryptos with the ability to enable payments with any crypto given enough demand. As of now, they can process payments with Bitcoin, Bitcoin Cash, Ethereum, USDC, USDT, XRP, Litecoin, and ProperT, with more to follow.
Much like an ATM, ForumPay instantly converts crypto payments to the cash equivalent when a purchase is made at the best rate. The merchant, seller, or business receives exactly what’s owed to them in the currency of their choice, and the funds are accumulated and deposited in the company bank account daily. On top of that, ForumPay doesn’t charge high fees like credit cards or wire transfers, nor is it time-consuming. It makes purchases quick and painless while simultaneously allowing businesses to adopt crypto and diversify their audience to meet modern market demands.
Much like an ATM, ForumPay instantly converts crypto payments to the cash equivalent when a purchase is made at the best rate. The merchant, seller, or business receives exactly what’s owed to them in the currency of their choice, and the funds are accumulated and deposited in the company bank account daily. On top of that, ForumPay doesn’t charge high fees like credit cards or wire transfers, nor is it time-consuming. It makes purchases quick and painless while simultaneously allowing businesses to adopt crypto and diversify their audience to meet modern market demands.
This makes any purchase as viable as any other, taxes included. ProperT payments are processed through ForumPay’s crypto payment gateway technology to ensure the fastest, cheapest, and most secure transacting for any quantity from anywhere in the world. It’s kind of a no-brainer.
We hope to get this message across to the mainstream media and educate firms and businesses that “the way it’s always been” isn’t always proactive, and new technologies aren’t to be approached as a threat. Property taxes are applicable depending on each state, whether purchased with bitcoin and settled in cash or done the traditional way.
For more, visit www.getpropert.com.
