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

[Tom Henderson]

400 Xeon cores doesn't go very far, even with N600s tagged on. BTC takes 
lots of special rigs to be profitable. It was an experiment. There were 
a few bucks.

GAAP requirements for BTC transactions follow those for other intangible 
asset transfers. I don't do them anymore.... it was a dribble when it ended.

Tom


On 11/28/18 8:34 PM, Liam Kelly 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 
> <mailto: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 <mailto: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
>
>     -- 
>     Ipg-smz mailing list
>     Ipg-smz at netpress.org <mailto:Ipg-smz at netpress.org>
>     http://netpress.org/mailman/listinfo/ipg-smz_netpress.org
>
>
-- 
Tom Henderson
ExtremeLabs, Inc.
+1 317 250 4646
Twitter: @extremelabs
Skype: extremelabsinc

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