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(For Americans) If you earn income in bitcoins, you still have to pay tax in USD. If you earn income in Euros, you still have to pay tax in USD. Bitcoin does
by kaonashi 13y ago
(For Americans) If you earn income in bitcoins, you still have to pay tax in USD. If you earn income in Euros, you still have to pay tax in USD. Bitcoin does not absolve you of your tax obligations, even thought it might help you to evade them.
- dasil003 13y agoThe interesting part would be what exchange rate you would use. The IRS publishes rates for major currencies, but Bitcoin is so volatile that a single yearly exchange rate could dramatically shift things one way or another.
- Flenser 13y agoBut do you pay based on what the bitcoin was worth in USD when you made the transaction, or when you pay your tax bill. Which exchange does that valuation come from?
- betterunix 13y agoI am pretty sure it is at the time of the transaction. This is no different than buying or selling stock.
- ubernostrum 13y agoBelieve it or not, we've had taxes for a long time on non-dollar-but-store-of-value things whose values fluctuate over time. Bitcoin does not present any sort of radical new challenge to the tax system.
- Flenser 13y agoOk, I had a feeling that would be already settled but a lot of people seem to think you should be paying taxes now and I don't see how can that can be done without knowing which of the many exchange rates to use.