Tax deduction for US-based employer paying in Bitcoin to overseas contractor

2

2

My employer can write off business expenses (my salary) if he pays me via wire transfer, PayPal, Payoneer and some other international payment systems. Is there a tax-deductible method for him to buy Bitcoin and send it to my wallet (or to my account from where I can withdraw to my wallet)?

I'm no good in legal terms, so feel free to edit the question if you understand what I'm talking about.

user8994

Posted 2013-11-19T19:18:42.743

Reputation: 23

Answers

1

I don't at all see why he couldn't purchase bitcoin through Coinbase or similar and deduct it. That should be entirely deductible, even the fees paid to buy the bitcoin (bank fees plus whatever Coinbase is charging these days).

Colin Dean

Posted 2013-11-19T19:18:42.743

Reputation: 6 559

1Thanks. I guess it's better if he sends it to my account (with my real name) rather than to my (anonymous) bitcoin wallet. Anyway it needs accountant consultation. – user8994 – 2013-11-20T08:01:30.847

Yes. I would think it would be treated just like a bank transfer, except that he's purchasing the foreign currency himself and transferring it. Don't forget to accept! – Colin Dean – 2013-11-20T13:14:18.340

Asked: 2013-11-19T19:18:42.743

Viewed: 210 times

Active: 2013-11-20T07:59:33.007