Steak'n Shake accepts Bitcoin payments, experts warn consumers to be aware of tax risks

according to Decrypt, the American chain restaurant Steak'n Shake has recently started accepting Bitcoin as a payment method, but tax experts remind consumers to be aware of related tax risks. According to the Internal Revenue Service (IRS) regulations, cryptocurrencies are considered property rather than currency, and any use of Bitcoin to purchase goods is considered a taxable transaction.

Lawrence Zlatkin, Vice President of Taxes at Coinbase, explained that when consumers use Bitcoin to purchase goods, they need to calculate the price difference between the purchase price of Bitcoin and the market value at the time of use as capital gains or losses, and pay the corresponding taxes to the IRS. Experts recommend that consumers keep all transaction records and choose a consistent method of calculation for tax reporting.

Although the IRS generally does not audit taxpayers for small transactions, the risk still exists as centralized exchanges report more user transaction data to the IRS. Using stablecoins pegged to the US dollar at a 1:1 ratio to purchase goods does not pose a tax risk.