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Taxes for accepted Dash proposals

Our team is about to submit a proposal and we wondering how the tax implications are for the US. Say you get 400 dash from a proposal to pay a team of 4, 100 DASH each.. the next steps to pay your team are:

1. Dash -> BTC (exchange)
2. BTC back to coinbase or gdax to USD
3. Going from BTC to USD will be a tax hit (short-term capital gains.. right?)

So we take the first time capital gains hit and then we have to pay income taxes per employee too right?

How is dash core or marketing etc doing this?

Any recommendations would be great.. trying to do some financial planning :)
 
You also have pay income tax on the Dash you recieve for the proposal even before you go to sell it to USD.

Make sure to keep that in mind. Also, make sure that you have a tax ID and set up a coinbase business account so that you're taxed at the corporate tax rate rather than the individual tax rate.


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Thank you jeff. Does anyone else have experience with this as well?

Creating a business coinbase account is hitting the pause button for months lol.
 
Try Bitflyer US instead. I think they do a business account as well. If you have a big enough sale, I can get you escalated for verification as I have friends there.


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Our team is about to submit a proposal and we wondering how the tax implications are for the US. Say you get 400 dash from a proposal to pay a team of 4, 100 DASH each.. the next steps to pay your team are:

1. Dash -> BTC (exchange)
2. BTC back to coinbase or gdax to USD
3. Going from BTC to USD will be a tax hit (short-term capital gains.. right?)

So we take the first time capital gains hit and then we have to pay income taxes per employee too right?

How is dash core or marketing etc doing this?

Any recommendations would be great.. trying to do some financial planning :)
These are great questions. Thanks for asking.
 
@Barrett Davis It's actually worse than you thought on the income tax. You'll be paying income tax on the Dash you receive from the treasury system. It basically looks like mining because it's a coinbase (from the blockchain, no prior inputs) transaction so you might as well treat it the same way as far as taxes go.

You have to pay payroll taxes on it when you're paying employees though.

At the end of the day, I'm not a lawyer or an accountant though. You should check with someone who does this for a living. This insight is based solely on how I've operated and how I've been advised to operate and frankly it makes sense.

Let me know if you have further questions and I'll do my best to answer them.
 
I made a proposal last month to write a U.S. Tax Guide, but I got a bare majority, not the 451 overvotes needed, so I won't be writing it.
 
If you are doing dash-->btc-->USD

Income tax when you receive the dash from the treasury. Capital gain or loss when you sell the dash for BTC. Capital gain or loss when you sell the BTC for USD.

If there is not much price fluctuation between transactions then the capital gain/losses will be negligible but still should be reported as such.
 
If you are doing dash-->btc-->USD

Income tax when you receive the dash from the treasury. Capital gain or loss when you sell the dash for BTC. Capital gain or loss when you sell the BTC for USD.

If there is not much price fluctuation between transactions then the capital gain/losses will be negligible but still should be reported as such.

Thank you. Any idea how to go DASH to USD?
 
@Barrett Davis I considered going through Mercury Cash as they have a Dash-USD pairing but their support is bad, their UX is bad, and I got confirmation that it would take weeks to get $30k worth of cash out after a sale - even with a business (corporate?) account.

Uphold you'll have a similar problem with withdrawal limits.
 
Thank you. Any idea how to go DASH to USD?

You can try Uphold or Kraken but will run into withdrawal limits on both unless you have a business account or highly verified account. Uphold has a $10k/day limit for a normal personal verified account
 
@Ryan Taylor mind shedding some light on this? if not publicly, can you PM me
We cannot offer tax advice. I would recommend consulting your CPA or tax attorney for advice. In most jurisdictions, receiving the Dash or any conversion from DASH to BTC or USD would trigger a taxable event... either income, short term capital gains / losses, or long term capital gains / losses.
 
I made a proposal last month to write a U.S. Tax Guide, but I got a bare majority, not the 451 overvotes needed, so I won't be writing it.
I still think that is a very important piece to have done. Crypto still have a "cyberpunk" element to it and see any taxation or such discussion as sacrilegious. But it is slowly changing. If you ever attempt to do this again...I'm sure we can get some community DASH donated to help with the proposal fee.
 
Exactly....what he said. If you're in Canada, Omland Heal is providing those services within the Canadian tax sphere and the current CRA frame work.
 
I won't pretend to know much about crypto taxes but I think people here are mixing up business income vs personal. If you receive it for business purposes and then have equal business expenses it's a wash. At the end of 2018 you would have spent it all on expenses and have zero business income regardless of trading. It's no different then getting paid in local currency in your country. And i'm not aware of any place where you would pay tax upon receiving a payment before work has been done... What company would operate in that country? If you leave it on your balance sheet for the fiscal year then the business needs to pay tax. But then you just write off expenses and have a lower tax bill the following year(s).
 
I still think that is a very important piece to have done. Crypto still have a "cyberpunk" element to it and see any taxation or such discussion as sacrilegious. But it is slowly changing. If you ever attempt to do this again...I'm sure we can get some community DASH donated to help with the proposal fee.
Regulation of such overbearing methods defeats the point, and negates all the advantages for which it was invented.

It's not so much sacreligious, as self-defeating. May as well forget the thing and go back to Fiat.

That, of course, being the point the regulators are aiming for... Make crypto worthless by burdening it with the same failings and encumberances it was designed and invented to avoid. Undermine every key point and advantage. Then it will be worthless.
 
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Regulation of such overbearing methods defeats the point, and negates all the advantages for which it was invented.

It's not so much sacreligious, as self-defeating. May as well forget the thing and go back to Fiat.

That, of course, being the point the regulators are aiming for... Make crypto worthless by burdening it with the same failings and encumberances it was designed and invented to avoid. Undermine every key point and advantage. Then it will be worthless.

Everything typically ends up following the same path. We're just in a simulation. :p
 
Why would you convert dash to btc? there are plenty ways to convert dash to usd.

Are you trolling or you don't know income tax, capital gain tax is illegal according to constitution and free market idea?

America has gone far from its great ideas in the beginning. And that's why cryptocurrency

gained its popularity in spite of its infamous usage as drug money.
 
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