Can Real Estate able with Bitcoin pay start to show up in Pittsburgh - Pittsburgh pa latest Forex Cryptocurrency Breaking News why market fail down what insurance auction

Pittsburgh pa latest Forex Cryptocurrency Breaking News why market fail down what insurance auction

Get Latest Breaking cryptocurrency news with pittsburgh pa auction insurance forex crypto market latest news to know why crypto currency market falling and going to down today and what is the reason

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Tuesday, March 13, 2018

Can Real Estate able with Bitcoin pay start to show up in Pittsburgh


Home buy with Bitcoin

 

Buy a house in bitcoins, the most popular crypto currency and whose value has increased above 13,000 USD, it is possible as long as certain steps are followed and the purchase is recorded in euros. The question, for the moment, is whether it makes sense to get rid of an asset that has appreciated more than 1,000% and could still maintain its exponential path.



It is not yet a common currency in USA Pittsburghp pa, but idealistic ads are starting to appear in houses where part of the purchase can be done in BTC. The purchase through


 this payment instrument is totally legal, but must go through several intermediate steps, such as its translation into euros, and is subject by the Tax Agency to prevent money laundering.


The steps to take to make the purchase

 


 

The simplest process is to agree with the seller one day to set the exchange rate of BTC and euros. The exchange of BTC would be carried out before a notary and in the deed would be the price in euros agreed for the sale. The transaction is nothing more than an ordinary purchase, with only one previous step: the buyer has made the change from bitcoin to euros. The only exception is that the buyer who delivers BTC will have to pay for the capital gain that has been reported by the divestment in bitcoin and that, obviously, must prove the legitimate origin of the money.

Finques El Vent is one of the first real estate agencies to accept payment in BTC. Ángel Aguiló, who advises those who want to make purchases in bitcoins, explains that those who accept the payment of a property in bitcoins are investors in cryptocurrencies. "They trust that it will be consolidated and that it is a safe payment method. Actually, in practice, it is like any other currency.

Aguiló explains that before a notary the buyer transfers his bitcoins to the seller from his cell phone (sometimes with the simple scanning of a QR code), he certifies that the transfer has been completed in the agreed amount and the deed is closed with the equivalent price in euros

The only one who would assume a certain risk when accepting bitcoins would be the seller, especially if the bitcoin, a clearly volatile value, depreciates from the moment of the transaction. If you obtain benefits you will have to pay taxes for the capital gain that has been reported to you.

In this case it must be remembered that the Court of Justice of the European Union (CJEU) has ruled that the exchange of bitcoins to euros or vice versa is not subject to VAT collection, something that does happen in some countries outside the EU. But if the transmission of bitcoins obtains a benefit, it must be taxed for the capital gain obtained, as would be the case with any investment, as José María Salcedo, a partner of the legal Attic office, remembers. Thus, "taxpayers who obtain a profit by comparison between the acquisition value of their bitcoins, and the transmission, must include it in their income tax," says the expert.

On the other hand, Salcedo points out that "the simple revaluation of the bitcoins acquired in their day (without having been transmitted and therefore there is a capital gain), could imply the obligation to present the declaration of the Patrimony Tax".

The purchase with cryptocurrencies could be seen as a swap, the exchange of two goods, in which bitcoin would be no more than an instrument of value. However, as it is not reliable money issued by a central bank, notarial writing and management can not be done in bitcoin, but in euros. The notary can establish that the payment has been made in part or in full in bitcoin, although he should inform the Tax Agency if he suspects that bitcoins have illicit origin or not sufficiently proven.

"The law allows payment (of a home) can be made by other means than the delivery of money, as, for example, the delivery of something else," says José Carmelo Llopis, delegate of new technologies of the General Council of Notaries .

To close a purchase with bitcoins must "always exist a prior agreement between the parties, you can not require the receipt of cryptocurrency as a means of payment, must identify and describe the cryptocurrency and express enough in euros," says Llopis.

What differentiates a transaction with bitcoin from one to euros is that the recipient of the cryptocurrency payment will have to declare and pay taxes for the profits derived from the appreciation of the bitcoin when it diverts, something that in the case of a payment in euros does not happen, since it was not appreciated or devaluated in front of anything.

Despite this, that obligation to pay taxes is not clear. "The transfer of the property has the known tax impact in all areas, but the tax impact of the transmission of bitcoin between individuals in these legal businesses can be more complicated and still has points undetermined," according to Llopis.




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