[Ipg-smz] Ohio accepts bitcoin to pay taxes (Techcrunch)

[Sharon Fisher]

Some states allow you to pay in gold.

On Tue, Nov 27, 2018, 11:18 AM Tom Henderson <thenderson at extremelabs.com>
wrote:

> BTC, in and of themselves, are not "taxable events". If you minted them,
> you have a basis and may have a capital gain in their manufacture.
>
> If you bought high and sold higher, there's a taxable gain. If you bought
> high and sold low, you have a loss.
>
> If you bought BTC at $5K and sold that segment for $5K, there is no loss
> or gain, and there is no theory of tax that applies, except those
> surrounding intangible property taxes, which are usually transient (taxed
> once per annum or period).
>
> So, paying in BTC for taxes due doesn't create another taxable event, e.g.
> no double taxation.
>
> Is Ohio smart or stupid for taking BTC? Smart. Three reasons: 1) it outs
> BTC holders who may or may not have an unreported possible gain; 2) allows
> those that bought high, which includes many people, a way of paying
> potentially without an offsetting loss, which would lower Ohio's capital
> gain income; and 3) getting paid today offsets inflation. All taxing
> authorities want to offset inflation, which they can't control.
>
> Tom
>
>
> On 11/27/18 6:12 AM, Liam Kelly wrote:
>
> The second degree of irony (of which I'm still parsing through) is that in
> the US all Bitcoin transactions are taxable events.
>
> So does that mean that paying taxes in BTC would also engender yet another
> taxable event?
>
> Outside of the infinite feedback loop of paying your crypto taxes, I think
> Ohio has done this more in regards of optimism/adoption ("bullish") and
> hoping to attract small businesses.
>
> The Midwest, in general, indeed seems pretty curious to attract crypto
> talent. There are more than a few politicians from the region announcing
> their crypto support.
>
> Final note: Bitcoin will eventually get absorbed by the state or die. I
> feel pretty confident about that despite holding a bit of this magic
> Internet money...
>
> Tom Geller <tom at tomgeller.com> schrieb am Di. 27. Nov. 2018 um 18:25:
>
>> This strikes me as strange because of something taught to me in an
>> economics class 15 years ago: Taxes are one of the only pinchpoints where
>> government can insist on payment in dollars.
>>
>> Even if the rest of society starts trading in chicken feet, by insisting
>> on dollars the government ensures that they continue to have value. (No
>> dollars? We're putting you in jail.) When the Hungarian pengő bills became
>> near-worthless in 1945, what replaced them? Tax certificates ("adópengő").
>>
>> Perhaps I was mistaught, or that economic model is no longer valid. Or
>> perhaps the state is sticking it to the federal government. (In the latter
>> case, I'd expect some lawsuits and public statements.) In either case, I
>> don't get it.
>>
>> ---
>> Tom Geller  *  Writer & Video/journalist  *  http://tomgeller.com
>>        Rotterdam, The Netherlands, +31 (0)6 87071468
>>             Oberlin, Ohio  *  +1-415-317-1805
>>
>>
>>
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>
> --
> Tom Henderson
> ExtremeLabs, Inc.
> +1 317 250 4646
> Twitter: @extremelabs
> Skype: extremelabsinc
>
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