View Single Post
Old 06-18-2013, 01:33 PM  
L-Pink
working on my tan
 
L-Pink's Avatar
 
Industry Role:
Join Date: Mar 2005
Location: Florida/Kentucky
Posts: 39,151
"If you need somewhere to spend your bitcoins ... so you do not have to convert them into fiat, and thus you do not owe any taxes on them …."

The above is what you posted. You state that if a customer trades bitcoins for your product the customer owes no tax on his bitcoins. That is incorrect.

The bitcoin is an asset that for most increased dramatically in value. Any of the profit on the bitcoin is subject to taxation. If I have a bitcoin I mined at $7 and give it to your company for $100 worth of product I owe taxes on the $93 gain.

How does purchasing from your company allow the customer not to pay taxes on his $93 gain? "Mr IRS auditor I bought something for $7 and traded it for $100 but don't owe taxes" That is what you said.


As far as your company paying taxes on the bitcoin how can you pay for someone else's gain? Your value is now set at whatever the price was for the product you traded it for.


.


.

Last edited by L-Pink; 06-18-2013 at 01:36 PM..
L-Pink is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote