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If we sell something in exchange for money, we are supposed to record the value in USD (if based in the US) at the time of sale, and pay taxes in USD on the sal
by youeseh 5y ago
If we sell something in exchange for money, we are supposed to record the value in USD (if based in the US) at the time of sale, and pay taxes in USD on the sale / profits etc.
So, Bitcoin is a fancy way of exchanging USD, similar to trading cars, or pogs. If the transaction involves some kind of an official title transfer, then we're going to pay taxes in USD...not a fraction of a pog.
- hanniabu 5y agoThat's like saying the euro isn't money because when you exchange it you dominate it in USD for taxes. Clearly this line of thought is flawed.
- youeseh 5y agoCan you accept payment in Euro in the US and then pay taxes in Euro? I don't believe this is the case. As far as the IRS is concerned, everything that isn't USD is just another non-currency asset. So far Bitcoin is a currency in El Salvador. That means, you can presumably do commerce and pay taxes in Bitcoin over there. But, I highly doubt anyone selling goods and services for Bitcoin wants to then pay their taxes in said Bitcoin because of the expectation that it will be worth much more in the future.