Due to a promotional deal with CashApp, Odell Beckham Jr. has agreed to receive his yearly salary of 750,000 dollars in BTC. Unfortunately for him, the deal is nowhere near the list of profitable deals made in the history of Bitcoins, thanks to obscure taxation policies on cryptocurrencies. The laws on cryptocurrency taxes and the recent fall of Bitcoin in the market would mean that he would lose more than 60% of his salary. Find more information here on the hugely anticipated future of Bitcoin.
Thanks to this incident, the crypto communities seem interested in the laws and policies regarding the taxation of cryptocurrencies. It seems that the investors have to pay tax for the value of cryptocurrencies on the day of receipt as opposed to its value on the day of the tax return. This could mean that if the value of the currency reaches the bottom after the transfer into your account is completed, and you would have to pay taxes for the money that you do not have. This ridiculous state of tax policies regarding cryptocurrencies has resulted in such an embarrassing loss for Odell Beckham Jr.
However, another faction claims that the NFL players receive their salary weekly, contrary to popular belief. Moreover, they also found some errors in the reports regarding the deal, which overstate the loss through this deal. The 7 figure sum he received from the CashApp for the promotional deal is worth well over the 750,000 he received for playing with the Los Angeles Rams. Nevertheless, the experts from the other faction claim that since the aggregate value has been signed on, it does not matter when he receives the money. He will be paying taxes for $750,000 with no regard to how the market behaves.
This, however, is not the first incident of its kind. Investors having trouble over tax laws has been there for several years now. Adrian Forza, the director of Crypto Tax Australia, elaborated on an Australian investor who had to pay five times more than the value of assets in tax. The reason, he believes, is that only a handful of these investors understand the policies and tex laws. The remainder of the enthusiasts invests in it because it’s volatile and fashionable.
Demographically, the majority of those investing in cryptocurrencies are males between the ages of 25-40 who had no real experience in any of the assets market. Many of them are attracted to this through exciting aspects like gaming and play-to-earn kind of models. The funny thing about cryptocurrencies is that the number of people who have brought several properties through these models is equally proportionate to those who lost their savings. But the market is hardly the reason for it. People tend to make bad deals mainly due to their lack of understanding of what they are dealing with.