Quote:
Originally Posted by signupdamnit
I'm not talking about using it for investments or tax fraud. Only as a means of collecting micro-payments. I would think that simply using a monthly accounting period would be enough. At the end of the month you total the amount collected in BTC and convert it to a USD amount and then pay taxes normally on it just as if you would if it were normal USD. I'm not an accountant but this seems to be reasonable to me.
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As a merchant you would need to sell the bitcoins as you receive them hopefully for the same value as received. To acquire them and sell once a month would require you to track the profit or loss between receiving them and redeeming them. They are after all an investment tool not fixed rate currency.
A thousand dollars in dollars is worth a thousand dollars regardless of when I deposit them in the bank. A thousand dollars worth of bitcoin changes hourly and you are required to pay tax on any increase in their value after you acquire them.
As a purchaser you would need to track them as I previously stated. Unless you aren't a US citizen then I have no idea what the tax codes are.
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