So I was having a conversation at work today with some other photographers about bitcoin. They were curious about it as I had mentioned its potential. Someone raised a very valid question. Let's say I earn 5 BTC - which is about $3000 right now. If that BTC were to go up in value and be valued at $25000 and I A. decided to sell for take the $25,000 or B. invest that $25,000 into my business. Where do you sit with paying tax on that earned income? No as far as the re-investing in the business, here in the UK the HMRC is generous when you buy equipment for work, so much of the cost is allowed to be written off in the first year and so on. Just curious what people might know for tax purposes.
