Overview
Bloomberg News quoted Steptoe partner Lisa Zarlenga in a December 7 article, titled "Bitcoin's Latest Plunge Highlights the Danger of a Crypto Salary," exploring the potential benefits and hurdles involved with receiving paychecks in crypto.
The article notes that while crypto compensation simplifies pay in many ways, such as quick and transparent transfers, particularly if an employer is in a foreign country – it also has its downsides.
For example, when it comes to US taxes, the Internal Revenue Service treats virtual currencies as property, meaning their tax status resembles that of stocks or bonds, rather than of cash. As such, Zarlenga explains "recipients owe ordinary income tax on whatever the fair market value of the coins is when they receive them. They also face capital gains taxes when they sell or swap the coins for other digital currencies."
The full article can be read at Bloomberg News.
