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IPFS News Link • Bitcoin

Tax compliance

Some of those that are possible might be described below.

This page was created by those in the Bitcoin community to help in understanding tax compliance concerns. This is not legal advice nor accounting advice. For either for those consult your attorney or accountant.

Tax Questions

The general tax questions and answers were shared by forum member bitcoinaccountant[1].

Are bitcoins taxable if I earned them by doing a service for someone else, or received them in exchange for something?

Anything that you receive as payment for goods or services is generally taxable income unless it is specifically exempted.

That means, if you mow your neighbor's lawn, it doesn't matter if he pays you $20 in cash, or $20 worth of bitcoins. (Or $20 worth of tomatoes for that matter)

In many jurisdictions, you are still legally required to report that as income. When using Bitcoin for payment the taxing authorities may be less likely to be aware of the payments but try to mow 10,000 neighbor's lawns and not report the income and you will be much more likely to get caught.