Sentences with phrase «value of virtual currency received»
Consequently, the fair market value of virtual currency received for services performed as an independent contractor, measured in U.S. dollars as of the date of receipt, constitutes self - employment income and is subject to the self - employment tax.
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A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in U.S. dollars, as of the date that the virtual currency was received.
Thereafter, the House Commerce and Consumer Affairs Committee amended the bill changing the language of the exemption to exclude «persons who engage in the business of selling or issuing payment instruments or stored value solely in the form of convertible virtual currency; or receive convertible virtual currency for transmission to another location» from the licensing requirement.
The IRS defines the cost basis of the virtual currency as its fair market value when it was received.
The value must be measured in U.S. dollars, as of the date that the virtual currency was received.
Must a taxpayer who receives virtual currency as payment for goods or services include in computing gross income the fair market value of the virtual currency?
If the fair market value of property received in exchange for virtual currency exceeds the taxpayer's adjusted basis of the virtual currency, the taxpayer has a taxable gain.
The taxpayer has a loss if the fair market value of the property received is less than the adjusted basis of the virtual currency.
The Monetary Authority of Singapore (MAS) sees the difference between digital tokens, which it regards as a «cryptographically - secured representation of a token - holder's rights to receive a benefit or to perform specified functions,» and virtual currency, which the regulator describes as «one particular type of digital token, which typically functions as a medium of exchange, a unit of account or a store of value.»
A-4: The basis of virtual currency that a taxpayer receives as payment for goods or servicesin Q&A -3 is the fair market value of the virtual currency in U.S. dollars as of the date of receipt.
Q - 3: Must a taxpayer who receives virtual currency as payment for goods or services include in computing gross income the fair market value of the virtual currency?
A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in U.S. dollars, as of the date that the virtual currency was received.
''... if the party that gives convertible virtual currency in trade receives in exchange goods or services that are subject to sales tax, that party owes sales tax based on the market value of the convertible virtual currency at the time of the transaction, converted to US dollars.