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So when they collect that bitcoin do you have to pay capital gains tax on the amount you paid then this year on next year's taxes? If you pay the capital gains
by narrator 8y ago
So when they collect that bitcoin do you have to pay capital gains tax on the amount you paid then this year on next year's taxes? If you pay the capital gains tax next year in bitcoin, do you have to pay the capital gains tax on that payment the year after that, etc.?
- akerl_ 8y agoI'd assume yes, just the same as if you sold bitcoin for USD yourself in order to pay the taxes. Ohio isn't making a claim that they're changing their official currency to Bitcoin, any more than a site that adds Paypal support or Apple Pay support is claiming that their new currency is AppleBucks.
- baddox 8y agoFor thoroughness, it’s also just the same as if you sold anything else that’s subject to capital gains tax in order to pay your taxes, which I suspect is not a rare occurrence.