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It shouldn't be cheaper for you, Bitcoins are still taxable income. It's not some magic, legal way to evade tax. Check out this article for extra info, obvious

It shouldn't be cheaper for you, Bitcoins are still taxable income. It's not some magic, legal way to evade tax. Check out this article for extra info, obviously specifics depend on national tax laws: https://en.bitcoin.it/wiki/Tax_compliance https://en.bitcoin.it/wiki/Tax_compliance

jebeng 13y ago
Oops. I should have elaborated there. The savings I was referring to were more from not having to pay a percentage to a freelance worker website, or not having to pay fees through paypal, as well as people seemingly willing to work for cheaper effective rates if being paid in bitcoin(note: I have no data to back this up). But assuming everything is in order tax wise, in a future audit is the use of bitcoin going to throw a wrench in works or anything?
- bayesianhorse 13y ago
  Certainly. How to manage a bitcoin portfolio isn't worked out at all. One of the problem is how to factor in the price instability with the payment schedule.
bayesianhorse 13y ago
I would actually be willing to accept payment this way, but only under very large provisions and at a considerable premium... for example I wouldn't have accepted btc at 200$ during the recent price blow up...
celticninja 13y ago
It can still be cheaper for you, bitcoins become taxable income at the point they are realised i.e. converted to fiat. As someone making payments in BTC int he way described (by BTC with USD, pay freelancer BTC) there is little difference between paying in BTC or USD. However the freelancer is the one who will dealw itht he tax implications and as he/she has elected to be paid in BTC you can defer responsibility to them. Aditionally if you are paying someone in a differnt country or otherwise would have to use a different currency then you will probbably see savings in BTC as there is no conversion to, e.g. EUR, no bank transfer/international wire fees, and the freelancer may also take less in BTC than in USD due to the ease of transferring the coins to them as oposed to going through the banking system and it taking 14 days.

jebeng 13y ago

Oops. I should have elaborated there. The savings I was referring to were more from not having to pay a percentage to a freelance worker website, or not having to pay fees through paypal, as well as people seemingly willing to work for cheaper effective rates if being paid in bitcoin(note: I have no data to back this up). But assuming everything is in order tax wise, in a future audit is the use of bitcoin going to throw a wrench in works or anything?

bayesianhorse 13y ago
Certainly. How to manage a bitcoin portfolio isn't worked out at all. One of the problem is how to factor in the price instability with the payment schedule.

bayesianhorse 13y ago

I would actually be willing to accept payment this way, but only under very large provisions and at a considerable premium... for example I wouldn't have accepted btc at 200$ during the recent price blow up...

celticninja 13y ago

It can still be cheaper for you, bitcoins become taxable income at the point they are realised i.e. converted to fiat. As someone making payments in BTC int he way described (by BTC with USD, pay freelancer BTC) there is little difference between paying in BTC or USD. However the freelancer is the one who will dealw itht he tax implications and as he/she has elected to be paid in BTC you can defer responsibility to them. Aditionally if you are paying someone in a differnt country or otherwise would have to use a different currency then you will probbably see savings in BTC as there is no conversion to, e.g. EUR, no bank transfer/international wire fees, and the freelancer may also take less in BTC than in USD due to the ease of transferring the coins to them as oposed to going through the banking system and it taking 14 days.