buying a house with partial cryto payment good idea?

[blindmedusa]

Hello. In this high interest environment, I'm thinking about buying my family a home with cash. Since I live in the San Francisco Bay Area, an average house where my kid goes to school costs 2M. What if I pay say, 1.2M with USD from stocks liquidation, and the rest with crypto under the table (if seller agrees to accept crypto)? This way, I can lower property taxes and not pay taxes on liquidating crypto? 

[Andrew_W]

Hi @blindmedusa,

Any trade, transfer, or sale of cryptocurrency is taxable event, including converting between different cryptocurrencies or trading cryptocurrency for another asset. Utilizing cryptocurrency to purchase another asset (including a home) will result in a taxable event, as if the cryptocurrency was sold, and any capital gain/loss would need to be accounted for on your personal tax return. 

Regarding property taxes, generally the tax assessor for the county/municipality will determine property taxes based on the value of the property when assessed, not on how it was purchased/paid for.