BitShares Forum
Main => General Discussion => Topic started by: bytemaster on October 17, 2014, 01:45:01 pm
-
I have a general question and am looking for an online source that describes the regulations around using an alternative (not USD) unit of account for calculating your gains or losses for tax purposes.
A company that receives income in EUROS and pays expenses in EUROS would probably want to use EUROS as the unit of account rather than USD even if they are incorporated in the US.
So can a company use BTC as a unit of account for the purposes of calculating profit / loss?
What kind of restrictions are there on which unit of account can be used?
At the end of the year assume there is 100 BTC profit and a tax rate of 30% and BTC is worth $400 do you sell 30 BTC for $1200 and send that to the IRS?
Assume that rather than BTC you wished to use gold, silver, euros, or some other currency as a US company?
Looking for examples on where this is the case.
Thanks for help doing research.
I am asking because I am attempting to figure out what features would be useful in a wallet that automated some of these calculations and to support businesses wishing to break out of the USD paradigmn.
-
In Germany, Bitcoin can be used as "unit of account" (i.e. private money)
http://www.spiegel.de/international/business/germany-declares-bitcoins-to-be-a-unit-of-account-a-917525.html
Taxable, but not payable with:
http://venturevillage.eu/germany-bitcoin-status
//edit: just figured wikipedia has a page for this ???
http://en.wikipedia.org/wiki/Legality_of_Bitcoin_by_country
-
Bytemaster maybe you looking for this?
Bartering Tax Center
http:// www . irs . gov/Businesses/Small-Businesses-&-Self-Employed/Barter-Exchanges
http:// www . forbes . com/2009/11/11/irs-tax-barter-exchange-income-personal-finance-wood.html
sorry for spaces i cant post any links as newbie
The reason why i think barter scheme is suitable for crypto taxation, because ecoins are like gold determined as commodity not as "currency aka funny money"