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A few years ago, Utah defined gold and silver as legal tender. If I understand this law correctly, this should mean that now that my business is in Utah, I can accept gold as a means of payment (I know about Goldmoney accounts, but technically this still uses "dollars" behind it).

For me (an industrial business), there is a set amount of gold I would take regardless of its USD price, since we directly use it, which is why I'm curious about this, in addition to it saving us time from converting USD to gold.

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    Regardless of where you are, you can accept whatever you like as payment: chickens, flowers, rocks, ... – Pete Becker Mar 6 '17 at 22:40
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    Note that anywhere in the US, if you accept non-USD payment, you are still responsible for paying the taxes on it at a market-based price. Federally this would be considered barter. – Brythan Mar 6 '17 at 22:44
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    "If I understand this law correctly" Have you considered asking a lawyer? It's their job to understand correctly. An industrial business such as your own no doubt has counsel. – Beanluc Mar 6 '17 at 23:27
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    You say that "there is a set amount of gold I would take regardless of its USD price". That seems strange to me. Assume someone owed you $1200 and they offered you an ounce of gold instead. Wouldn't you rather have the cash if the gold spot price were less than $1200/oz? Then you could buy the gold and have money left over. – James Mar 7 '17 at 16:24
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    The US Dollar doesn't have to "hold its value over time". When someone pays you in cash, you can immediately buy gold with the cash if that is your preference. If the gold spot price is $1200, would you rather have an ounce of gold than $1300? How about $1500? How about $2000? – James Mar 7 '17 at 18:42
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You can accept almost anything mutually agreeable to you and the other party as payment. That's the definition of "barter". If you agree to trade manufactured goods for livestock, as long as both parties agree on the terms, I'm not aware of any law that would prohibit it.

I hedged with "almost" because of course you can't accept something that is explicitly illegal. Like you can't say you'll accept cocaine as payment. Less obviously, there are laws regulating the sale of guns, nuclear fuel, agricultural products, etc.

You'd still have to pay taxes, and it can get complicated to determine the taxable value of the transaction. Sorry, but you can't avoid taxes by getting your income in something other than cash.

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Of course you can accept gold as payment.

Would anyone pay in gold? Would it have tax consequences on your federal taxes? These additional questions are off-topic on this site about personal finance.

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Yes.

"There is, ...no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services."

Taken from the US Department of the Treasury.

  • Well, it depends: if there was a debt incurred (before the transaction), they must accept $. But you are correct for the case of just walking into a store and trying to buy something. +1 for the link. – Peter K. Mar 8 '17 at 13:00
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Yes. But the question is do you want to have gold?

If you are going to buy gold anyway, and if you can get a good conversion rate between USD:gold, then why not?

If you are looking to use your earnings on things that you cannot buy using gold, then I'd recommend you take USD instead.

Have fun!

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