- Joined
- Oct 22, 2002
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- Frozen in Michigan
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- Old Fart
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- Don't be a dick.
In most cases, you would have been right. But the cryptocurrency he was given was considered valueless at the time of receipt. Each share was worth only thousandths of a cent. They did anticipate that the value would grow exponentially, which it did.My son was given renumeration for software reviews in cryptocurrency. It was not taxed until he sold it.
Ruth
Legally it should have been.
Tax should have been paid on its fair market value at the time of receipt. At the time of sale any gain or loss would have been realized and taxed.
What ZiprHead is proposing would have caused my son to owe taxes at the end of the year for the increase in value of the cryptocurrency since his acquisition even though he had realized no actual useful cash income. That is where my objection lies.
Ruth
He would owe taxes on the value the day it was issued just as income is taxed at your payday.
And yes, the gains in the value of his income should also be taxed