It is not recognized as an official currency, therefore it can't be taxed UNLESS it is sold for something like USD. It's not any different than if I traded him a bunch of power supplies or 400 bottles of homemade lotion for the tickets.
That being said, I'm not familiar with Canadian laws. I'm just going from how I would have to handle the situation in the US.
In reference to the face value resale law of the tickets, you could sell them for 8BTC and claim in your eyes you felt that each BTC was worth $50USD. It's not regulated by the govt.
That being said, I'm not familiar with Canadian laws. I'm just going from how I would have to handle the situation in the US.
In reference to the face value resale law of the tickets, you could sell them for 8BTC and claim in your eyes you felt that each BTC was worth $50USD. It's not regulated by the govt.
That is ridiculous. If you work for chickens and you eat the chickens you still have to declare the equivalent amount in $ and pay you taxes in $. It is income at the instant you get the chickens. It is not "in your eyes," you have to have some reasonable method of calculating. For instance, the avg price at Mt. Gox on the day you received the funds and you need that info if you are audited. I am no expert but common sense should dictate that you can't circumvent things "because it is Bitcoin" or "because it is not regulated by the government" or "because it is not fiat" or any of the other screwball reasons I have seen on here. http://www.irs.gov/taxtopics/tc420.html.
Damn! I admit I was wrong. Good show, HELP.
Either way, if I'm not in contractual agreement with the other person, then I'm not telling the IRS anything. In the U.S. Governments eyes this makes me worse than a serial killer.
If I did work for chickens, I'd probably start shipping chickens to them as my tax payment.
