Steak 'n Shake has started accepting Bitcoin for payments, but customers should be aware of the tax implications. All purchases made with Bitcoin are considered taxable events by the IRS, regardless of amount. This means that even small transactions, like a $14 burger, could require customers to report capital gains or losses when filing taxes. Experts advise that when purchasing with Bitcoin, individuals must calculate the difference between the purchase price and the current market value of the cryptocurrency. There are methods for calculating these taxes, with the 'first in, first out' method recommended by tax professionals. Though the IRS might not audit small discrepancies, the requirement for centralized exchanges to report user transactions to the IRS increases the stakes for individual tax compliance. Currently, there is no de minimis exemption for small transactions, though there are calls for one. Alternatively, using stablecoins for purchases avoids this tax liability, as they are not treated as taxable events. However, converting Bitcoin to stablecoins does incur tax consequences.

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