FTX

Olsonist

Disgusting Liberal Elitist
30,026
4,572
New Oak City
You would think that this would be best practices and that every company would just get this right. Don't think, just do this. But I've even heard of FAANG companies accidentally fucking over their employees.
 

Olsonist

Disgusting Liberal Elitist
30,026
4,572
New Oak City
Never. ACH or wire. Checks from only very trusted clients.

Agreed, but you'll be happy when FedNow comes on line. ACH only dates to the freakin' 1960s. It is older than commercial DRAM. FedNow is going to credit you in a few seconds not days. It should go live next May.
 

MR.CLEAN

Moderator
46,889
4,881
Not here
That is something I never even thought about - you get paid in crypto and the IRS is going to tax you on what it was worth THAT DAY.
If he was an employee, perhaps. Last time I looked at GAAP, BTC could be characterized as an asset, subject to FMV calcs. If his entity is an accrual-method accounter, it could also capture any losses.

For what its worth, I received stock (which is not BTC, but I'd argue that it's similar in terms of risk profile) in a thinly traded OTC company as payment for services rendered. When received, the stock was worth around $250k at its then-current trading price.

When I filed my 1065 for the shares 4 months later, the trading price had already dropped by half.

By the end of the year, the company had gone dark and the shares no longer quoteable - essentially useless.

I had to file a few amendments to make sure the actual value of the asset was taxed (and no more). The tax code doesn't generally make you eat an overpayment due to loss of value of an asset.

Not legal advice, not tax advice, I'm not your lawyer, etc. etc. etc.
 
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giegs

Anarchist
933
462
Arid

MR.CLEAN

Moderator
46,889
4,881
Not here
Agreed, but you'll be happy when FedNow comes on line. ACH only dates to the freakin' 1960s. It is older than commercial DRAM. FedNow is going to credit you in a few seconds not days. It should go live next May.
in my experience, domestic wire takes 4-6 hours if sent in morning. ACH is sometimes just a few minutes, sometimes a few days. I have occasionally used paypal invoicing, despite the extra fees. Much quicker. Not holding my breath on FEDNOW being useful until 2024 at earliest.
 

giegs

Anarchist
933
462
Arid
how many youngsters, who thought they made a killing on crypto even after some losses, will be surprised by what they owe in taxes?
Depends on the platform they're on. Folks on a DEX can likely avoid taxes under the assumption that the IRS won't have insight into their crypto related tax liability. Anyone on a CEX, especially those licensed in the US, will probably have to deal with it. Some of the financial products like staking, liquidity pools, and automated market makers can generate really annoying tax obligations when it comes time to report, especially if there's not native support for that purpose.

Most people with money in crypto don't even know how the system works conceptually.
 

kent_island_sailor

Super Anarchist
27,683
5,527
Kent Island!
If he was an employee, perhaps.

Not legal advice, not tax advice, I'm not your lawyer, etc. etc. etc.
In this case we are talking an NFL player who took his salary in BitCoin.
I see all kinds of issues with paying people with "not-money", not least of which is how you account for it and the tax obligations on your end, never mind idiot football players having their pay evaporate.
 

giegs

Anarchist
933
462
Arid
At least a stock is ownership in *something*, you can buy blue chips or penny stocks depending on how quick you want to go broke.
Generally yes, but the concept of ownership in the stock market is beyond convoluted. Custodial arrangements often come with a reduction to shareholder rights. Overvoting is easy evidence of this.
Good luck with the audit
Thanks! I learned my lesson years ago thinking I could make some extra money on a tax obligation before year end. Sure couldn't. The IRS makes the ATF seem amicable in comparison.
 

kent_island_sailor

Super Anarchist
27,683
5,527
Kent Island!
The IRS asks you if you have crypto holdings. You can lie and probably get away with it depending on how you are holding them. For awhile. Eventually you'll want to spend it and then they'll be on you like white on rice.
 

MR.CLEAN

Moderator
46,889
4,881
Not here
Generally yes, but the concept of ownership in the stock market is beyond convoluted. Custodial arrangements often come with a reduction to shareholder rights. Overvoting is easy evidence of this.
Convoluted, but generally transparent if you or your advisors are smart enough to know where to find the answers.
Thanks! I learned my lesson years ago thinking I could make some extra money on a tax obligation before year end. Sure couldn't. The IRS makes the ATF seem amicable in comparison.
Yeah, I had the fortune to learn that lesson during the chaos of the Trump election with an examiner who hated him. We bonded over it, and I ended up with a 0$ adjustment in early 2017. From then on, any deduction taken must be able to be defended and proved 'in the room'...
 

Clove Hitch

Halyard licker
10,596
1,787
around and about
The IRS asks you if you have crypto holdings. You can lie and probably get away with it depending on how you are holding them. For awhile. Eventually you'll want to spend it and then they'll be on you like white on rice.
The problem is that anything on a blockchain- Ethereum chain or whatever blockchain- is permanent. It's actually the opposite of easy to hide. As soon as the FBI got some computer nerds that knew about blockchain and Bitcoin they were able to roll up all kinds of fools who thought that the Silk Road was Anonymous and that their Bitcoin meant they were untouchable. Once a coin is created on the Chain you can just follow it around and see who it gets moved to. It's ludicrous. It's actually probably easier to hide dodgy bags of cash. Using an nft to launder money? Anybody who transfers or sells or does anything with that nft will permanently have their hands on it
 


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