Bitcoin Forum

Can any good corporate tax people on this forum tell me how best to handle the following tax scenario?

I am an employee and shareholder of  "Widgets Inc" (C corporation), which accepts bitcoin on its sales of widgets.  My company has accumulated 10 BTC over the past few years on these sales.

Widgets Inc wants to transfer the value of the BTC to me. It can either sell the BTC and send me regular dollars, or it can send me the bitcoin directly.

Questions:

1. Is there an optimal way to do this that results in the least *combined* amount of tax liability, when considering corporate capital gains tax?

* I say "combined" because I want to take into account both the corporation's tax liability PLUS the my personal tax liability. 

2. Is there any way that Widgets Inc can avoid capital gains tax by directly transferring the bitcoin (which is considered "property" by the IRS) to me?

Please take into account that the "transfer" could be salary, a corporate distribution, or any other mechanism you are aware of. I'm open to all solutions.


Why I am asking this:

From what I've read, C corporations actually fare much worse than individuals in terms of capital gains taxes. Individuals receive "favorable treatment", while C corps do not. 

From what I have read, since bitcoin is already considered as a property, then there is no evading of tax but you can avoid the payment of high tax by just comparing the two scenerio. But wait, I guess its when you sell for cash that its regarded as capital gains but since they will be transferring then thats when the issue of tax will arise. If you collect dollars, then it would be interpreted that your btc was sold to the corporation and by that you will be liable to pay Capital Gains Tax.

How did you come up with that? :D

They have their transactions in their books and decided to hold, BTC went up, so there are gains to be reported.
Why were they planning to transfer the ownership to you? Do they owe you money or were they simply hoping that it will allow them to avoid taxation.
You said they were accumulating over the years, so they were reporting those coins as company assets each year, right?

No you are getting it all wrong and its because the company will not recognise it as an asset rather a liability in the books and the gain arising on such will be added to the customers deposit because the btc op has, is like a loan to the company. Now, in this case when OP is trying to withdraw, if its going to be cash then he will pay CGT because he needs to sell the bitcoin to cash but if he is withdrawing the BTC then what he did is just to defer the payment of the tax to a future date when he will be converting it to cash.