4 ms·
This is actually a good point. The government know you've been paid it and you've paid tax but that doesn't mean you can't rightfully hide the rest of the money
by breakfastduck 6y ago
This is actually a good point. The government know you've been paid it and you've paid tax but that doesn't mean you can't rightfully hide the rest of the money away somewhere.
They don't know if you spent the rest of it immediately or kept it if you never put it into a domestic bank.
- jariel 6y agoYou can indeed 'rightfully stash $1B in cash under your mattress' - but almost any other private/public storage mechanism will involve gains/losses which have to be disclosed.
- packetlost 6y agoWouldn't they only have to be disclosed when they get turned back into usable currency within your jurisdiction?
- sneak 6y agoUS citizens are taxed on their worldwide capital gains (and income).
- packetlost 6y agoRight, but capital gains tax is calculated based on the profits relative to the currency in which it was bought and sold with. You have to sell the bitcoin or exchange it for another form of recognized currency in order to pay capital gains on it. This is more or less how stocks work as well.
- Ancapistani 6y agoI believe those are generally only taxed when “realized”.