A company is able to pay its employees either partially or at 100% in Bitcoin. The company reports and withholds the appropriate USD equivalent on the employee's tax return.

If the employee holds the bitcoin and its value increases/decreases over a few months/years, will the employee be subject to capital gains/losses on the bitcoin when selling it for a fiat such as USD in the United States?

  • 3
    What kind of (legitimate) company is paying employees in Bitcoin? – Nosjack Apr 29 '20 at 14:22
  • Presumably companies who do a lot of work with the currencies, such as bitcoin unlimited, Ethereum foundation, coinbase – Josh Hibschman Apr 29 '20 at 15:27
  • 2
    The logistics of paying employees in a currency that volatile would be interesting to say the least. – JohnFx Apr 29 '20 at 17:04

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