Cryptocurrency Q&A
What does it mean to be paid in crypto?
What does it mean to be paid in crypto?
Leonardo
Thu Dec 05 2024
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5 answers
1095
I've heard people getting paid in cryptocurrency these days and I'm wondering what exactly it means. How does one receive payment in crypto and how is it different from regular payments?
5 answers
Sara
Sat Dec 07 2024
Receiving cryptocurrency as payment is akin to earning income, with the value of the crypto assessed based on the prevalent market rate at the time of receipt.
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KDramaLegendaryStarlight
Sat Dec 07 2024
This means that if you accept cryptocurrency as payment for goods or services, the value of the crypto at that moment is considered taxable income.
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Martina
Sat Dec 07 2024
It's crucial to keep accurate records of the date and value of the crypto received to correctly report it as income on your taxes.
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Michele
Fri Dec 06 2024
Additionally, if the value of the cryptocurrency you received as payment increases over time, you may owe capital gains taxes on the appreciation.
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Martino
Fri Dec 06 2024
Capital gains taxes are levied on the profit you make from selling an asset that has increased in value since you acquired it. In the case of cryptocurrency, this means you would owe taxes on the difference between the market value at the time of receipt and the sale price.
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