_people_ may believe that but I don't think the IRS does. Spending crypto that has appreciated in value on goods and services is still a taxable event for CGT purposes.

Exactly. "Spending" the cryptocurrency is just convenient UX over the exchange process.

Using a credit card that abstracts the details doesn't get you off the hook from paying capital gains tax.

Does bartering an investment vehicle allow you to escape capital gains? If so, that seems like a loophole that should be closed. Why should you be exempt from gains on your capital investment?

It seems like MasterCard should be reporting each swap of crypto for dollars to the IRS and sending you a tax form at the end of the year. If that's not the case, expect regulatory action to correct it.

Nope, bartering (at least in the US) is still taxable on the fair market value of whatever you're exchanging.

OMG in what country do you live? 15%??? We have to pay 50% on this in Canada, well at least the ones who are in the top earning bracket.

I would gladly pay the 15%. I mean how greedy is it to make these kind of gains in crypto and then trying to avoid a measly 15% of tax lol.

Are you sure you pay 50% in tax on the profits? A quick google suggests that 50% of the profits counts as income, which is then taxed at your income rate. 50*50 = 25% in the top bracket.

In the US long-term cap gains is 0%, 15%, or 20% - not far off from 25%.

At least in the US, spending crypto is taxed the same as selling it.

https://www.coinbase.com/learn/tips-and-tutorials/crypto-and...

Spending the crypto through a card will not stop the IRS from coming after you for their cut.