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

Thu Nov 29 02:10:39 UTC 2018

I have just completed the research for an article on data monetization
supported by blockchains. This is a straightforward use case, with a here
and now value, which blockchains are designed to address. Not much of data
is actually utilized currently due to privacy issues. Several tech
companies provide free services while they make money from data without the
knowledge of their customers. With the outrage that has built up following
the Cambridge Analytics incident, and as a result of the GDPR legislation,
it will be hard for tech companies to continue to sell data without the
knowledge of their customers.

Blockchain-based companies will compensate data suppliers with
cryptocurrencies. As the volume and variety of data explode with the
expansion of the Internet of Things and connected devices, the urgency to
monetize data is even greater. On the demand side, applications such as
autonomous cars, and augmented reality need data in real-time which
blockchains can mediate through their market exchanges.

On Wed, Nov 28, 2018 at 5:36 PM Liam Kelly <ljkelly1888 at gmail.com> wrote:

> Don't you need to report any transaction to the IRS?
>
> I know in Germany buying a coffee (retail transactions in general) has
> recently been taken been taken out of the tax authorities cross hairs, but
> I wasn't sure if this was the case in the US. Can I go to Starbucks without
> telling the authorities about my crypto purchase?
>
> As a side note, the BTC tax situation in Ohio includes an important
> detail. Ohio will be converting their BTC to USD inmediately (via payments
> platform BTCPay). So the loss/gain of value will always be on the side of
> the holder, and never Ohio.
>
> When were you mining BTC by the way? Did you never report your earnings on
> your BTC at that time? I think at the recent price points you could likely
> boot up your rig again...
>
> Tom Henderson <thenderson at extremelabs.com> schrieb am Mi. 28. Nov. 2018
> um 03:18:
>
>> 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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>>> Ipg-smz at netpress.org
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>>>
>>
>> --
>> Tom Henderson
>> ExtremeLabs, Inc.
>> +1 317 250 4646
>> Twitter: @extremelabs
>> Skype: extremelabsinc
>>
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