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How would you value it though? If you accepted the coins at a $5 per bitcoin rate for a product valued at $5, but the rate at the time of the tax return is $15
by mrvc 15y ago
How would you value it though? If you accepted the coins at a $5 per bitcoin rate for a product valued at $5, but the rate at the time of the tax return is $15 per bitcoin, do you pay tax on the $15 or the $5?
- gst 15y agoAnd even if you take a given rate you cannot be sure that you can really sell your coins for this rate. E.g., assume that you are one of those early miners who currently owns at least 400.000 BTC (see http://bitcoinreport.blogspot.com/2011/01/latest-bitcoin-top-100-rich-list.html http://bitcoinreport.blogspot.com/2011/01/latest-bitcoin-top...). How do you declare this on your tax statement? Yes - in theory that's worth 4 million dollars. However, as soon as you try to sell your BTCs you will crash the market.
- vabole 15y agoThat is merely an accounting issue. Multinationals are dealing with currency translation all the time. In your example you would of course pay tax from $15.