You are viewing a single comment's thread from:

RE: How exactly do taxes from Steemit income work?

in #taxes6 years ago

If you are paid for work in coffee, then, you need to declare the value of the coffee as income.

Nobody does that, of course, and the IRS doesn't always care, but that's the rules.

Think about if you were compensated with computer equipment. If you got $3,000 worth of gear, then, you are supposed to claim $3,000 of income. You are taxed at the market value of the items. There's a logic there.

According to H&R Block, here's how goods are taxed:

"Barter — The FMV of property or services you receive or provide in exchange for work done is taxable income. Report this income on Schedule C. You can use another form or schedule if you barter property items instead of services.

If you’re a member of a barter exchange, you should receive a Form 1099-B. This shows the FMV of all property and services you traded during the year."

Now, all that said, cryptocurrency is treated like an investment, and it's taxed as capital gains.

You take the money you took out, and subtract the money you put in. That is your capital gain. That is taxed at a different rate than income.