Real Estate Transactions Using Bitcoin
In September, Sotheby’s International Realty announced their transaction of one of the first home sales paid for in bitcoin, when the dollar value of a single bitcoin was at $3,429. Since the home in Austin, Texas sold, the value of a single bitcoin has skyrocketed, reaching values of as much as $19,200.
Those who deal with bitcoin real estate exchanges say that the process is fairly simple, but it is more nuanced for the buyer, who has to consider the tax implications of buying a home with bitcoins. The process is just like an all-cash buy, but the parties trade their currency digitally in about 15 minutes. The other difference is that the seller needs to keep an eye on the daily fluctuating value of the cryptocurrency.
Under the new tax law that went into effect on January 1, 2018, the U.S. government recognizes bitcoin as property, so trading it could trigger a potential capital gains tax.
For comments, questions or concerns, please contact Daniella Soloway
Connect CRE News
Your source for daily news covering CRE transactions and trends. Stay informed on national, regional and property sector news that matters to your business.
Connect Events
Whether digital or in-person, Connect Events set the stage to bring together relevant content with CRE’s most active players to engage, influence and inform.
Connect CREative
A full-service marketing agency dedicated to CRE clients. Combining our CRE background with our team’s business, marketing, communications, technology, to develop and execute comprehensive strategies to create, build, and and grow successful brands.