The original post: /r/cryptocurrency by /u/howevertheory98968 on 2024-12-08 18:35:00.
Right now I am a consultant. For lack of better term, I am kind of a whistleblower consultant (I cannot be more specific, but trust me, I am a good guy*), and the work I do (WHICH IS ALL LEGAL) is anonymous. I get paid anonymously right now, I'll spare you the details but it's all legal. Anyway, I want to use crypto because I want to promote its usage. I also realize there is no difference between getting paid in money and buying crypto, and getting paid in crypto. I just want to encourage its usage.
The most information I can provide to you is that I am in the early stages of exposing an industry that is rife with some of the worst scammers ever.
My question is, if I want to get paid in for example Bitcoin, does this maintain anonymity? I use CoinBase and they obviously know who I am. But could a customer who pays to my address know who I am? I know you can see wallets online. Does this mean they could tell how much money I make/have? Is it connected to my name in any way? Do I have to send them any tax forms at the end of the year if they pay me in crypto; and would these forms have my name on them? Does the exchange handle that?
Next question. How do I declare taxes if I get paid in crypto? What if I get paid $500 in bitcoin and hold forever? Is that income? If I get paid $500 in bitcoin and then sell for $400 at a loss, is that $500 income minus $100 = $400 profit? If I get paid $500 in crypto this year, hold it, I pay taxes on $500 income, but then in over a year if I sell it for a gain, do I still pay taxes on it? On the part i didn't pay taxes on already? I know $500 isn't enough regarding taxes, so swap with any number you want.
I have no concerns with paying taxes. I'm not trying to miss taxes. I just want to know how anonymous is getting paid in crypto for the seller, not for the taxman, and do you get double taxed if you pay taxes on the income and then again when you sell it?
*I know this sounds like what a felon would say