Is buying a loaded casascius Bitcoin a taxable event?

Hey, I could really use some help here. This is for someone in the US. I’m thinking about buying a loaded casascius coin with 1.1 BTC. If I buy it and the seller probably sells my BTC the next day, would I have to pay capital gains tax on that 1.1 BTC, or does the seller handle that? I’m kinda lost on this tax stuff.

You'd only pay tax when you sell and buy the btc afaik for fiat. If you sold the cars coin for 1.1 after buying it for 1.1 there'd be no tax to pay. Unless the btc you pay for a coin is different for that when you sell it (then it'd be the gain or loss of the difference times the fiat value of the coin). Disclaimer: not legal advice just how I'd do it.

You bought something so you don't pay gains. Assuming you have the BTC and are just sending it to them. What the seller does with the BTC at that point is no longer a concern to you. *This is not tax advice and there are some situations where it is wrong, but for the most part till you convert to fiat, it does not matter. -Dave

I purchased the coins from an exchange won’t the exchange report that I sold it to someone else? Again appreciate everyone input.

I'm not a tax expert, but the IRS is pretty clear on this subject. You must pay capital gains tax on the difference in the value of 1.1 BTC between when you bought it and when you exchanged it for the Casascius coin. It doesn't matter what the seller does with your 1.1 BTC. Note: the "fair market value" of the Casascius coin is assumed to be what you paid for it. The exchange may report that you withdrew the 1.1 BTC. But it doesn't necessarily know what you did with it, and it doesn't change anything.

How would they know you've sold it to someone else? Do you not have custody of the coin, is it still with them? Most companies are not designed to annoy their customers either, they'll likely report to you if you had to report something than going straight to the IRS.

No idea where your jurisdiction is. But for most countries, this will not be a taxable event until you sell. The only thing that you need to be aware of when you buy the physical coin is your cost basis. That will determine what your CGT liabilities are going into the future when you do decide to sell. But the CGT liability is not predetermined in any way.