Paying Taxes for Virtual Currency Swapping Stuff Deals
1. If someone sells or buys stuff online using a virtual currency (credits, coins...) without using real money whatsoever , and the website venue owner gets no financial benefit from this trading, so is the website owner free of paying taxes?
2. Someone who buys goods using a virtual currency: Are these goods considered as a taxable compensation?
Re: Paying Taxes for Virtual Currency Swapping Stuff Deals
Anything you receive of value that is not exempt by law from being taxable (such as child support, worker's compensation, veteran's benefits, etc.) is taxable. If you have a cost for this "virtual currency" then your income subject to tax would be the difference between the cost and the value received. This is similar to a barter situation, and barter transactions are taxable.