The value it was when you got it doesn't matter. What matter is the day you sold it (so CA$ with your example)
- You got paid on 1st January 1BTC ($8000/BTC the day of the payment)
- You sell it on 31 December (1BTC/$10000) and transfer $10k to your bank account
You need to report $10k, not $8k
- You got paid on 1st January 1BTC ($8000/BTC the day of the payment)
- You sell it on 31 December (1BTC/$10000) and transfer $10k to your bank account
You need to report $10k, not $8k
Uhmm I don't think this is right or the correct way of explaining it. If hypersafe2020's question is still related to his OP then I think there are two taxable events that had happened in what he is asking.
Going with the same price as what hypersafe2020 has given...
The 1st event: Buyer sending BTC (worth 10$) as payment for the seller's T-shirt product (worth 10$ in retail) - The revenue from the 10$ here is considered taxable under income tax
The 2nd event: Seller decided to hold the BTC and it is now worth 20$ - The capital gains you have earned which is 10$ is taxable here under capital gains tax
It's really not the moment when you decided it to sell the Bitcoin you are holding because it is a separate event, trading crypto and doing a garage sale as a business should be treated separately here yes they are bot considered income to only one person but the thing is there are different kinds of tax while you are doing a business and while you are trading crypto different kinds of tax means you have different rates which might not coincide with one another.
