[Edmond Dantes]

I have a customer from the states that is earning via method of mine and his earnings come in crypto. He is asking about how should he declare that income for his taxes. Would anyone be able to answer this ?

[TooBurnt]

As a person in the United States, you should always pay your taxes

[Yin Yang]

I have a customer from the states that is earning via method of mine and his earnings come in crypto. He is asking about how should he declare that income for his taxes. Would anyone be able to answer this ?

Most services like TurboTax will upcharge to track stocks and crypto.

[XtremeDiscount]

You should really use a good accountant and not use HF for this lol

[jcole]

I have a customer from the states that is earning via method of mine and his earnings come in crypto. He is asking about how should he declare that income for his taxes. Would anyone be able to answer this ?

The moment you receive crypto as payment for goods, services, or earnings then IRS considers that ordinary income.

If the crypto is payment for goods/services, gig work, or running a business then it is considered self-employment income. You need to use a "Schedule C".

If it is passive or non-business related income he needs to use a "Form 1040".

[SUI-3183372]

The crypto that he gets paid gets reported at income initially. Any profit or losses incurred from holding the crypto will be reported as capital gains or capital losses.

Example:
He receives 100x payments at $10 each. He reports $1000 in income and pays income taxes on it.
The $1000 in crypto that he received went up 10%, and is valued at $1100 now. He reports $100 in capital gains (assuming he realized the gains (sold)) and pays capital gains taxes on that $100.

Two tax obligations for receiving crypto assuming you aren't liquidating it immediately.

[Pr0m3th3us]

Yea i wouldn't report that, never have, never will. Crypto is a technically a commodity in the US, therefore not money, not income, therefore fuck the IRS.

[SUI-3183372]

Yea i wouldn't report that, never have, never will. Crypto is a technically a commodity in the US, therefore not money, not income, therefore fuck the IRS.

My dude... what..?

Do you think we aren't taxed on commodities? Everyone buying gold has just found the best tax loophole ever?

Commodities are commonly taxed through capital gains, income, and sales taxes, the first two which would apply directly to crypto.

I have no issue with the idea of skipping out on your taxes for whatever motivation you may have, you do you, but citing crypto being a commodity as the reason why you don't pay taxes makes zero sense.

Edit: While we can debate whether crypto is or is not a commodity, and I think we'd find common ground there, for the IRS's purposes it's classified as property (per Notice 2014-21). And while different agencies classify crypto differently, the CFTC classifies it as a commodity, none of these classifications exempt it from tax.

So many centralized protocols and apps reports back to the IRS now. I have the IRS mailing me well before tax season now telling me they know I trade crypto and to be careful that I report it correctly. If OP's customer is touching any centralized entities, not reporting is becoming riskier and riskier and I advise against it unless you really know how to navigate anonymity and privacy on chain.

[Pr0m3th3us]

My dude... what..?

Do you think we aren't taxed on commodities? Everyone buying gold has just found the best tax loophole ever?

Commodities are commonly taxed through capital gains, income, and sales taxes, the first two which would apply directly to crypto.

I have no issue with the idea of skipping out on your taxes for whatever motivation you may have, you do you, but citing crypto being a commodity as the reason why you don't pay taxes makes zero sense.

Edit: While we can debate whether crypto is or is not a commodity, and I think we'd find common ground there, for the IRS's purposes it's classified as property (per Notice 2014-21). And while different agencies classify crypto differently, the CFTC classifies it as a commodity, none of these classifications exempt it from tax.

So many centralized protocols and apps reports back to the IRS now. I have the IRS mailing me well before tax season now telling me they know I trade crypto and to be careful that I report it correctly. If OP's customer is touching any centralized entities, not reporting is becoming riskier and riskier and I advise against it unless you really know how to navigate anonymity and privacy on chain.

All commodities are exempt from tax in my eyes. If its not official US currency im not paying tax on it.

[SUI-3183372]

All commodities are exempt from tax in my eyes. If its not official US currency im not paying tax on it.

After spending 15 years dealing with Orgy I know better than to do anything here than say "best of luck, hope everything works out for you!"

[Orgy]

After spending 15 years dealing with Orgy I know better than to do anything here than say "best of luck, hope everything works out for you!"

i need 10 bytes to quick like this post

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After spending 15 years dealing with Orgy I know better than to do anything here than say "best of luck, hope everything works out for you!"

i found some bytes