Paying for a Tesla with bitcoin may have major tax implications, and could make the transaction far more expensive than paying with cash.
Elon Musk revealed late Tuesday that Tesla will officially begin to accept bitcoin as payment for its vehicles in the U.S. The move, which Musk first announced a month and a half ago, is a major development in the world of cryptocurrency. Investors who have watched bitcoin’s rally the past few months can now trade their crypto in for one of the hottest cars on the market. But trading in bitcoin for a Tesla isn’t as simple as putting down a credit card. There are major tax implications for buyers — particularly those who invested in bitcoin early and have since watched their holdings grow exponentially. In fact, buying a new Tesla using bitcoin may end up being far more expensive than buying one with cash.
