Ohio says businesses can now pay their taxes in bitcoin!

in #bitcoin5 years ago

Big news out of the Midwest!

The great state of Ohio says that they will now be accepting payments in bitcoin and bitcoin cash for business taxes in the state.

The reason for doing this is to encourage businesses and tech companies to explore the use of cryptocurrencies, and to also make life easier for the ones that already do use it.

More about it can be seen here:

https://www.cnbc.com/2018/11/29/ohio-rolls-out-the-red-carpet-for-blockchain-businesses-by-accepting-bitcoin-this-tax-season.html

This is very big news for crypto and the entire country.

Never before has a government allowed for taxes to be paid in bitcoin or any other cryptocurrency.

This is significant in that it helps pave the way for bitcoin or some other cryptocurrency to be looked at as money as opposed to a commodity or property, like it is currently.

You cannot pay your taxes in ounces of gold or barrels of oil, but you can pay them in bitcoin...

Very interesting.

Just the beginning?

I fully expect other states to go this route as well over the coming months.

I even expect some states to go a step further and allow individuals to pay their taxes in bitcoin.

Once that happens, and once merchants start accepting payment in bitcoin much more often, we will have a true competing currency with traditional fiat.

When that happens, it will be interesting to see what the federal government decides to do.

Get the popcorn ready!

Stay informed my friends.

Image Source:

https://bitcoinexchangeguide.com/do-you-owe-tax-money-in-ohio-you-can-now-use-bitcoin-as-settlement/

Follow me: @jrcornel

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Let’s keep that ball rolling 👍😎👍

Must be they are expecting a rise in BTC price... that’s what I make of it!

Posted using Partiko iOS

I think they are just trying to get cryto-related business to move to Ohio and make a home there.

Interesting jrc, you might be right there. I would have thought government of any size would want to ensure minimum volatility in any currency they accept for payment of taxes. They must be figuring that volatility risks are minimal compared to the medium to long term advantages to the state economy if they can successfully encourage capital inflow and innovation.

Even if they haven’t done sufficient due diligence, the perceived legitimacy will probably have a positive ripple effect for the entire digital currency space that is warranted by the fundamentals of the technology. So, good news I think.

Yep, agreed. It says they will immediately be converting them to fiat, so there isn't much of a holding risk beyond the transfer time I believe.

I support adoption, not the taxes! Good news for crypto.

I hear you. Though I do enjoy the roads, traffic lights, education for my kids, protection and fire safety that my taxes help provide. :)

I hope we will see other stats doing the same soon that will do good for the market

Agreed. People were saying bitcoin had no uses at all, couldn't even use it to buy thing or pay taxes. Well that argument is weakening...

Damn right this great news, this means that crypto is easily integrating into the system.

Posted using Partiko iOS

Yep, it is starting to anyways.

Don't get me wrong, this IS good news for us crypto enthusiasts/ investors.

As for me, I'd rather just use my extra cash to pay this year's taxes, as opposed to increasing what I owe in taxes next year by selling BTC at profit (capital gains) to do it. But I suppose that's a perspective which is unique to long-term investors like myself, who can afford to hold onto their position(s) regardless of the current stage (of the market cycle).

It just wouldn't make sense to sell my bitcoin and then have to pay back 10% of all my profits only to go back and re-buy weeks or months later, probably at a higher price (needing the price to drop at least 10% from where I sold it to pay this year's taxes just to buy it at even). That is the definition of "sucker tax".

Currently it only applies to businesses. It would make things easier for merchants who accept bitcoin.

I gotcha. Yeah, I suppose that would take some of the headaches away from dealing in crypto.

Yep. Now we just need the IRS to do something similar and stop calling it property.

A great start for sure! I think the next big step for adoption are seamless integration to not only accept but also convert to fiat for merchants. Remember that most merchants and businesses need to pay employees and bills so fiat will continue to be King, unfortunately.

Posted using Partiko iOS

Yep, unless you can start paying your bills in bitcoin. That may be the next step. :) Though, admittedly we seem to be a ways away from that happening. This was just a very tiny step forward, but it was a step in the right direction never the less.

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