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I find accepting it & having to pay US taxes to be a pain unless I convert it into USD immediately. Otherwise I have to use special software to figure out the U

I find accepting it & having to pay US taxes to be a pain unless I convert it into USD immediately. Otherwise I have to use special software to figure out the USD price at the time of receipt & then the USD price at the time of conversion into anything else. I would imagine for large businesses this probably isn't to big of a concern. I also wonder if they could get away with making significant amounts of money by picking the price highs & lows of the day of receipt and day of conversion to USD when reporting taxes. On the consumer side, I can't imagine keeping track of BTC prices to pay for stuff if I used it as an every day form of currency. I would need special software to help me file taxes. It would need to keep track of every purchase of BTC and then the price of BTC/USD whenever I purchased something. To me this is a huge issue & would create a giant spreadsheet to turn in with my taxes. On the bright side, if more people did this maybe we would have different tax laws regarding cryptocurrencies in the US.

oarsinsync 8y ago
> I would imagine for large businesses this probably isn't to big of a concern. I also wonder if they could get away with making significant amounts of money by picking the price highs & lows of the day of receipt and day of conversion to USD when reporting taxes. Nope. The daily spot price is determined and that's the value you need to use in your accounting with currency conversion for tax purposes. It's set by taking the value at a particular time of the day, and that's the value set for the day. That also happens to be the busiest time of day in the Fx markets, unsurprisingly, as minor fluctuations in the price can have massive positive (or negative) impacts on banks businesses.
- mattferderer 8y ago
  Good to know. I was under the assumption you were to use the price at the time of the transaction. The daily spot price seems like a huge risk for businesses.
  - tim333 8y ago
    I'm more up on the UK system than the US but how it kind of works here is technically the liability is the price at the time of the transaction but they don't mind you estimating or using approximate prices if it doesn't have a large effect on the tax liability.
  - oarsinsync 8y ago
    > The daily spot price seems like a huge risk for businesses. You factor it into your pricing models. Take the daily spot price from the day before, go +/- 3 cents in your favour, and you're probably fine. Unless you're dealing with a hugely volatile currency, you're unlikely to see more than a 1 or 2 cent variation on a day by day basis.

oarsinsync 8y ago

> I would imagine for large businesses this probably isn't to big of a concern. I also wonder if they could get away with making significant amounts of money by picking the price highs & lows of the day of receipt and day of conversion to USD when reporting taxes. Nope. The daily spot price is determined and that's the value you need to use in your accounting with currency conversion for tax purposes. It's set by taking the value at a particular time of the day, and that's the value set for the day. That also happens to be the busiest time of day in the Fx markets, unsurprisingly, as minor fluctuations in the price can have massive positive (or negative) impacts on banks businesses.

mattferderer 8y ago
Good to know. I was under the assumption you were to use the price at the time of the transaction. The daily spot price seems like a huge risk for businesses.
- tim333 8y ago
  I'm more up on the UK system than the US but how it kind of works here is technically the liability is the price at the time of the transaction but they don't mind you estimating or using approximate prices if it doesn't have a large effect on the tax liability.
- oarsinsync 8y ago
  > The daily spot price seems like a huge risk for businesses. You factor it into your pricing models. Take the daily spot price from the day before, go +/- 3 cents in your favour, and you're probably fine. Unless you're dealing with a hugely volatile currency, you're unlikely to see more than a 1 or 2 cent variation on a day by day basis.