I mean, yeah but if the payments are over a period of time and bitcoin increases in price in the future it would cost the team more money than they wanted to pay him. If bitcoin goes down it would cost the team less in way of dollars. I don’t think the team wants to speculate in bitcoin. Player is free to buy bitcoin with his own money or take a personal loan against future earning and invest now.
You can't make the argument that they lost money because they bought BTC to pay him and then BTC went up. They would only lose money in that case if they had the intention to hold the BTC, which in this case they didn't. They would be buying it specifically only because he wanted to receive his pay in it.
Because they would then need to buy the bitcoin today to not risk price changes in bitcoin. And a team is a company they would rather use the money for future payment to invest in something else.
What you are saying won’t work. Let’s say the player is due $8,000,000 next year. In today’s prices that would be about 1,000 bitcoins. Explain to me how the team could agree to these terms and not speculate in bitcoin. The only way would be to buy the bitcoins now. With the money, but then they couldn’t use that money now to invest in something else.
Funny story (for me at least). Christmas 2012, I found myself at a party of a Super Bowl winning football player. Discussion turned to "anybody have any stock tips?"
The ob/gyn told of a drug in trials that was "the Viagra for women". I mentioned BTC, at about $12. We made a bet for the following year to compare.
The NFL star bought both.
A year later, Viagra for women was down. BTC crossed $1000 from $12. NFL guy is still a good friend.
OB/Gyn called me on December 15, 2017, or so, asking how to buy BTC.... Oops!
Even if the team paid him in bitcoin he'd still receive a 1099 for his income reporting the USD value of the bitcoin paid to him at the time it was paid.
So how's he gonna avoid taxes when the IRS has received a tax form from his team stating that he made X amount of dollars in the tax year?
Oh wait you have no idea how taxes work.
Your employer will want to deduct the amount he pays you from his income as an expense to himself in order to lower his own taxable income. He will report the dollar amount that was paid to you. It doesn’t matter if you were paid in bitcoin or dollars you will have to report to the irs your income in usd terms. If BTC appreciates before you pay your taxes you will owe additional taxes on top of your income taxes as capital gains tax on the difference between the cost basis you were paid it at and the value you sold it at. If it depreciates before you pay your taxes you will still owe taxes on the USD amount reported by your employer.
Wtf are you talking about?
In your country would you have to pay income tax on the BTC before cashing it out though? I would think not, it's probably more that if/when you sell it for fiat you then pay income and capital gains tax on it.
It's probably fairly straightforward to spend some of that BTC on Monero and then sell it OTC to someone else in private.
You pay income when you receive income (in whatever form - speaking for the US). If you receive $1000 cash, you pay income tax on $1000 of income. If you receive $1000 worth of BTC, then you pay $1000 worth of income tax. Capital gains only comes when you sell (and an exchange for Monero, for instance, sounds as a sale of BTC & but of Monero, even if you didn't go through fiat).
Sure, you could do a Monero exchange & sale in private, but you still gotta report that, else it's tax evasion if they catch you.
That's interesting, I wonder if it's the same where I am. I assume it's based on the USD market value of the Bitcoin at the time of receiving it?
> it's tax evasion if they catch you.
Oh, for sure. I was just speculating on whether the NFL player was indeed trying to game the tax system and how he might go about doing that. If it's the case that trading BTC for Monero triggers a tax event then it's irrelevant though.
Yes, fair market value is taken. This applies to any good/service taken as payment. If help you pack, and you repay me with a meal, I'm *technically* supposed to count that $20 meal as income, worth it's market value (what you paid). No one does, cuz it's not worth the hassle, but you're supposed to...
Gettin paid in Bitcoin would be hard to hide, since your employer is going to submit a "here's how much we paid him" form to the IRS (the number escapes me). It'll list the USD amount that the company paid for the BTC, not necessarily the value you got for it, which may cause additional issues, since those could be 2 different values. If the company reports they paid you $12,000, but the value of the BTC at the time you received it was $11,900, then there's an issue, since neither of you are really wrong...
What is withheld against his will? Bitcoin? The NFL teams don't owe him anything unless he signs a contract and they won't sign a contract with him that includes bitcoin payments.
I love how you act like it's some huge horrible thing when in reality it's nothing at all.
It is bad for publishers because it forces them to duplicate development effort, and prevents differentiation and customisation.
It also allows Google to watch you even after you've left their search results page.