ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Crypto Channel
  2. Paying Taxes in Bitcoin Is Possible, Boosts Usage Case
Crypto Channel
Share

Paying Taxes in Bitcoin Is Possible, Boosts Usage Case

Tom LydonSep 22, 2022
2022-09-22

Integral to the fortunes of bitcoin, other digital currencies, and crypto-correlated stocks is expansion of the usage case for cryptocurrencies. The viable ones, at least.

Looked at differently, the more legitimate avenues where bitcoin can gain a payment foothold, the better. Whether it’s something as mundane as buying groceries with the digital currency or larger purchases, such as cars or houses, the broader the acceptance of bitcoin as a form of payment, the better for digital assets and exchange traded funds such as the Invesco Alerian Galaxy Crypto Economy ETF (SATO ).

How about using bitcoin to pay taxes? The idea is in its early stages, but Colorado is stepping up to the plate. That state’s Department of Revenue recently announced it is allowing residents to pay individual income tax, business income tax, sales and use tax, withholding tax, severance tax, and excise fuel tax with cryptocurrency.

“Only PayPal Personal accounts can pay using cryptocurrency. PayPal Business accounts cannot pay using cryptocurrency at this time,” according to the Colorado Department of Revenue. “You must have the entire value of your invoice in a single cryptocurrency in your PayPal Cryptocurrencies Hub.”

In plain English, Colorado residents and business owners looking to pay taxes in crypto must have a PayPal account. As a result, it’s reasonable to assume that the only cryptocurrencies the state will accept as forms of tax payment are bitcoin, ethererum, litecoin, and bitcoin cash — the only digital currencies available for purchase on PayPal.

There are benefits for PayPal, which accounts for almost 1% of the SATO roster, in the Colorado scenario. Tax payers opting to use crypto must pay a flat $1 and 1.83% of the transaction amount — some of which is likely to flow to PayPal.

“Fees such as PayPal purchase fees, when buying cryptocurrency through PayPal, or miner/gas fees, when transferring cryptocurrency from an external wallet to your PayPal Cryptocurrencies Hub, may apply,” added the Department of Revenue.

While Colorado didn’t comment to this effect, it’s possible that as the PayPal/crypto offering gains popularity, the state could broaden the offering to include Block (NYSE:SQ). Block is a direct rival to PayPal and allows users to buy and store bitcoin on the platform. That stock accounts for 3.12% of the SATO roster.

For more news, information, and strategy, visit the Crypto Channel.

vettafi.com is owned by VettaFi, which also owns the index provider for SATO. VettaFi is not the sponsor of SATO, but VettaFi’s affiliate receives an index licensing fee from the ETF sponsor.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X