Raphael Stevens

Elon Musk at a 2015 event to launch the new Tesla Model X Crossover SUV in Fremont, California.Justin Sullivan | Getty Images News | Getty ImagesYou may be aware that you can now purchase a Tesla using bitcoin.Tesla CEO Elon Musk announced late Tuesday that it is now possible to buy Tesla vehicles in the U.S. with bitcoin.”You can now buy a Tesla with bitcoin,” Musk tweeted.If the idea appeals to you, here’s a twist: The taxman will be hovering with palms out.When you use bitcoin to purchase goods or services, you are in effect selling that cryptocurrency. And for tax purposes, the IRS treats bitcoin and its brethren as property whose sale comes with either a gain or loss depending on whether it is worth more or less than when you acquired it.More from Personal Finance:How Social Security benefits are handled at deathThe IRS has issued more than 42.5 million refundsA decade-by-decade guide to retirement planning”It’s really important to know the cost basis of any cryptocurrency — the value when you bought it — and the timing of that,” said Garrett Watson, a senior policy analyst at the Tax Foundation. “That’s going to determine how much is subject to tax and what tax rate you’re paying.”Right now, one bitcoin is worth about $56,000, up from about $6,700 a year ago. Last month, Tesla announced that it had bought $1.5 billion worth of bitcoin and would soon begin accepting bitcoin as a form of payment for its electric vehicles, which come with starting prices of about $38,000 for a Model 3 to about $80,000 for a Model X, according to Edmunds.com.If you were to use bitcoin that you’ve held for one year or less, any increase between its value when you bought it and when you use it to make a purchase is considered a short-term gain and would be taxed at ordinary income tax rates, which range from 10% to 37%, depending on your total income.Be aware that depending on your other income and the amount of the short-term gain, you could be pushed into a higher tax bracket. For example, if you had $40,000 in taxable income without the bitcoin transaction, the highest rate you’d pay on that would be 12%. If you were to add a bitcoin gain of $10,000 to that, it would push you into the next tax bracket, which comes with a marginal rate of 22% for income above $40,525.Zoom In IconArrows pointing outwardsOn the other hand, if you had held the bitcoin for more than a year when you made the purchase, you’d be taxed at long-term capital gains rates, which are either 0%, 15% or 20%, depending on which tax bracket your income falls into.One way to reduce the capital gains taxation is to use other investment losses against it.”If you have capital losses elsewhere, it’s a way to minimize your net tax bill,” Watson said.If you have more losses than gains, you generally can use up to $3,000 a year to offset other income on your federal taxes and carry forward additional amounts to future years.Tesla has a spot on its website that provides some details of how it will handle bitcoin purchases. The company did not respond to an email inquiry for additional information. More

Protesters gather at a rally in support of bills and legislation to block evictions in Massachusetts for up to a year.Boston Globe | Boston Globe | Getty ImagesThe country’s attempts to get the coronavirus pandemic under control could be undermined by the upcoming expiration of the national ban on evictions, experts warn.The Centers for Disease Control and Prevention’s moratorium on most evictions across the country has been in effect since September 2020, but is now scheduled to lapse in a week.Around 1 in 5 adult renters say they didn’t pay last month’s rent, according to a survey published this month by the Census Bureau. Closer to 1 in 3 Black renters said the same.Allowing mass evictions to continue could cause a surge in Covid cases and deaths, according to a recent study.More from Personal Finance:Four months behind on rent, he got help from his landlordMore than 2,000 organizations urge Biden to extend eviction banWhat to know about applying for some of the $45 billion in rental aidThat’s because many displaced people double up with family members or friends or are forced to turn to crowded shelters.During the pandemic, 43 states, plus Washington, D.C., temporarily barred evictions. Many of the moratoriums lasted just 10 weeks, while some states continue to prohibit the proceedings.Researchers found that allowing evictions to continue in these states caused as many as 433,700 excess cases of Covid-19 and 10,700 additional deaths in the U.S. between March and September, before the CDC ban went into effect nationwide.”When you’re looking at an infectious disease like Covid-19, evictions can have an impact not only on the health of evicted families, but also on the health of the broader community,” said Kathryn Leifheit, one of the study’s authors and a postdoctoral fellow at the UCLA Fielding School of Public Health.Zoom In IconArrows pointing outwardsEvicting tenants is a last resort, said Bob Pinnegar, president of the National Apartment Association. However, the last year has driven landlords to the brink, he said.”Over 50% of the nation’s rental housing providers are mom-and-pop owners, who rely on their few units as their only source of income,” he said. “Reserves are running out, and in many cases are exhausted.”The CDC has sent a proposal to the Office of Management and Budget for regulatory review, which experts say indicates that the health agency is taking steps to keep the protection in place.The Washington Post reported on Wednesday that the ban may be extended through July.CDC spokesman Jason McDonald said a decision to extend the moratorium has not been made. And the White House did not immediately respond to a request for comment.Meanwhile, housing advocates are watching the clock and say the ban needs to be kept in place at least until the historic pot of money allocated by Congress for rental arrears is distributed.”A lapsed moratorium only increases disease transmission and thwarts the purpose of $45 billion in assistance,” said Emily Benfer, an eviction expert and a visiting professor of law at Wake Forest University. More

A small business owner in Chinatown, San FranciscoSource: CNBCBeginning April 6, small businesses and non-profits can apply for up to 24 months of relief, with a maximum loan amount of $500,000, the Small Business Administration announced Wednesday.The previous limit for such businesses was six months, with a maximum loan amount of $150,000.”More than 3.7 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans, which provide low-interest emergency working capital to help save their businesses,” SBA Administrator Isabella Casillas Guzman said in a statement. “However, the pandemic has lasted longer than expected, and they need larger loans.”More from Invest in You:Suze Orman: Don’t invest your stimulus checks. Here’s what to doWomen are more financially stressed. Here’s how to overcome itWomen lag behind men in saving for retirement. Covid made it worseHow to applyThe EIDL program offers businesses 30-year fixed-rate loans that provide capital for normal operating expenses, including health-care benefits, rent, utilities and fixed debt payments, for a certain period. These loans are not forgivable, unlike EIDL Advance loans or money lent through the Paycheck Protection Program.Eligible small businesses and non-profits can apply for loans through the end of the year and may continue to request additional funds even after the Dec. 31 deadline, according to the SBA.The SBA to give guidance on topping up loansThere is also good news for borrowers that have already applied or received loans through the SBA program. Some loans approved prior to the week of April 6 will be eligible for an increase based on the new maximum amounts announced Wednesday.In addition, businesses that previously received loans but would like to be considered under the new guidelines do not have to take any immediate action, the SBA said.The agency will reach out to those businesses via email closer to the April start date with more information about requesting an increase. Applicants that already accepted a loan calculated under the previous guidelines have up to two years after the date of issuance to ask for additional funding, according to the SBA.The EIDL program has approved about 3.75 million loans worth a total of more than $200 billion through March 18, according to the SBA. Nearly 80% of those loans are for less than $100,000.The move to send more loan money to struggling small businesses comes as the Senate prepares to vote on extending the Paycheck Protection Program through May 31 instead of ending it on March 31.SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.CHECK OUT: How to make money with creative side hustles, from people who earn thousands on sites like Etsy and Twitch via Grow with Acorns+CNBC.Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns. More

Jeff Landry, Louisiana attorney general, speaks during a news conference outside the Supreme Court in Washington, D.C., on Monday, Sept. 9, 2019.Andrew Harrer | Bloomberg | Getty ImagesFourteen states filed suit on Wednesday against President Joe Biden’s moratorium on new oil and natural gas leases on public lands and waters.A coalition of 13 states, led by Louisiana, filed one lawsuit on Wednesday. Wyoming filed a separate lawsuit. The states in Louisiana’s suit are Alabama, Alaska, Arkansas, Georgia, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Texas, Utah and West Virginia. All 14 states have Republican attorneys general.”This moratorium might make for a nice headline about fighting climate change, but the real consequences of the action are far from certain and far from uniformly environmentally friendly,” the Wyoming lawsuit said. Biden’s order on Jan. 27 to pause new leasing was part of a series of executive actions to address climate change and transition the economy away from fossil fuel production and toward clean energy.In a statement Wednesday, Louisiana Attorney General Jeff Landry called Biden’s order an “aggressive, reckless abuse of Presidential power.”CNBC PoliticsRead more of CNBC’s politics coverage:Blinken warns NATO that China threatens alliance’s securityVice President Harris will oversee effort to resolve problems at U.S.-Mexico borderSchumer and McConnell clash over election reformBiden also directed the secretary of the Interior Department to begin a thorough review of existing permits for fossil fuel development and ordered the federal government to conserve 30% of public lands and water by 2030.The suits also come as the Biden administration prepares to unveil its proposal for overhauling the nation’s infrastructure, which is expected to include an ambitious set of climate-related proposals.A depot used to store pipes for Transcanada Corp’s planned Keystone XL oil pipeline is seen in Gascoyne, North Dakota, January 25, 2017.Terray Sylvester | ReutersThe Louisiana lawsuit argued that the president’s executive order would hurt communities dependent on oil and gas drilling and drive up energy prices. The lawsuit also requested the Bureau of Land Management be allowed to restart quarterly oil and gas lease sales.The Interior Department declined to comment on the lawsuits.The oil and gas leasing moratorium would not end fossil fuel extraction since the industry still holds undeveloped leases.Drilling on federal lands contributes to roughly a quarter of U.S. greenhouse gas emissions and generates billions of dollars in revenue. More