4 ms·

Hypothetically if you were payed in shoes, how would you pay the IRS? Sell the shoes for enough money to pay taxes?

rayiner 13y ago
This is actually a problem for some people. E.g. they receive some property (usually a family farm) but can't pay taxes on the value received. There are various complicates and work-arounds in the tax code to deal with this situation, but sometimes they just end up selling the farm.
- conception 13y ago
  Or they win a bunch of stuff on a gameshow, but can't pay for the taxes on the "income".
- bratsche 13y ago
  There was a bit on NPR a few months ago about someone who inherited some artwork from a parent who died. There was an extremely valuable piece of art which was made from some something like elephant tusk or something that is banned now, but wasn't when the art was created, and so now it is illegal to sell the piece. The IRS wanted to be paid for the value of the piece, but the people who inherited it were trying to argue that since they're not allowed to sell it it has no value. And I don't think they could just afford out of pocket whatever the IRS was claiming was owed.
  - Fuzzwah 13y ago
    I was interested in learning more about this but my googling couldn't turn up anything from NPR. The piece couldn't be sold because it features a stuffed bald eagle (of which sale and even ownership of is prohibited by the 1940 Bald and Golden Eagle Protection Act and the 1918 Migratory Bird Treaty Act). I did dig up these: http://www.nytimes.com/2012/07/22/arts/design/a-catch-22-of-art-and-taxes-starring-a-stuffed-eagle.html http://www.nytimes.com/2012/07/22/arts/design/a-catch-22-of-... http://www.forbes.com/sites/janetnovack/2012/07/22/the-irs-art-advisory-panel-has-its-head-inthe-clouds/ http://www.forbes.com/sites/janetnovack/2012/07/22/the-irs-a... http://dontmesswithtaxes.typepad.com/dont_mess_with_taxes/2012/11/irs-deal-provides-museum-home-for-art-work-no-tax-bill-for-former-owners.html http://dontmesswithtaxes.typepad.com/dont_mess_with_taxes/20... The outcome was that they donated to the MoMa, but weren't allowed to claim a tax deduction for the donation. So yeah... kind of screwed.
yxhuvud 13y ago
You pay taxes in dollar, or whatever your local currency happens to be. If your income is not in the same currency, then it is your problem to exchange it.

This is actually a problem for some people. E.g. they receive some property (usually a family farm) but can't pay taxes on the value received. There are various complicates and work-arounds in the tax code to deal with this situation, but sometimes they just end up selling the farm.

conception 13y ago
Or they win a bunch of stuff on a gameshow, but can't pay for the taxes on the "income".
bratsche 13y ago
There was a bit on NPR a few months ago about someone who inherited some artwork from a parent who died. There was an extremely valuable piece of art which was made from some something like elephant tusk or something that is banned now, but wasn't when the art was created, and so now it is illegal to sell the piece. The IRS wanted to be paid for the value of the piece, but the people who inherited it were trying to argue that since they're not allowed to sell it it has no value. And I don't think they could just afford out of pocket whatever the IRS was claiming was owed.
- Fuzzwah 13y ago
  I was interested in learning more about this but my googling couldn't turn up anything from NPR. The piece couldn't be sold because it features a stuffed bald eagle (of which sale and even ownership of is prohibited by the 1940 Bald and Golden Eagle Protection Act and the 1918 Migratory Bird Treaty Act). I did dig up these: http://www.nytimes.com/2012/07/22/arts/design/a-catch-22-of-art-and-taxes-starring-a-stuffed-eagle.html http://www.nytimes.com/2012/07/22/arts/design/a-catch-22-of-... http://www.forbes.com/sites/janetnovack/2012/07/22/the-irs-art-advisory-panel-has-its-head-inthe-clouds/ http://www.forbes.com/sites/janetnovack/2012/07/22/the-irs-a... http://dontmesswithtaxes.typepad.com/dont_mess_with_taxes/2012/11/irs-deal-provides-museum-home-for-art-work-no-tax-bill-for-former-owners.html http://dontmesswithtaxes.typepad.com/dont_mess_with_taxes/20... The outcome was that they donated to the MoMa, but weren't allowed to claim a tax deduction for the donation. So yeah... kind of screwed.

yxhuvud 13y ago

You pay taxes in dollar, or whatever your local currency happens to be. If your income is not in the same currency, then it is your problem to exchange it.