Bitcoin Forum

Favors, like sex, are also a means of exchange. What is legally the difference between taxing virtual currency and taxing sex?

favors are a form of barter and therefor subject to tax, therefor sexual favors need to be reported to the IRS so that they may be taxed properly

How do they calculate the value of sex?
Is it a flat rate or does it depend on the quality?

what is the value of the barter?  if I fix your sisters car and she gives me a sexual favor, what was the equivalent cost of the car fixing? Oil change - $50; break inspection - $25; lube job - $30... and so on

huge fan of this thread.

First of all, what do you mean by "taxing virtual currency"? Are you talking about the sales tax?  VAT?  Capital gains tax, and capital losses credits?
By the way, there is nothing virtual about Bitcoin. It's a hard currency. Irreversible.

Next, which jurisdiction are you considering?

Finally: I just paid for massage. The goods-and-services tax was included.

Maybe they could use sexcoins as a measure of the value of sex :P

What if the exchange was more of a gift for her?  Is that tax-exempt?

in the US, at least if I remember correctly, one is supposed to report barter transactions as if they were income.  

so if I receive sex 4 times a week at 1 hour sessions, this would be considered $600 in weekly income based on fair market value of $150 per hour that I see on http://classifieds.myredbook.com/

http://www.irs.gov/taxtopics/tc420.html

note that if the sex is considered a gift, then the donor is liable for taxes...

Who pays the gift tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes

it is possible that if both parties view themselves as recipients of the gift an audit by the IRS may be required so that the government can properly assess tax liability.

Makes no sense. How can you treat a barter exchange as income? If $600 worth of sex between two individuals took place, that logic leads to a total of $1,200 dollars taxed. What happens in case of a threesome, or an orgy? One orgy.
By the same token, if I am selling potatoes for US dollars, those dollars are my taxable income, but so are the buyer's potatoes. Does the buyer pay income tax on the value of potatoes? It's an exchange.

when it comes to taxes, it just a matter of the taxman interpreting it however they want in their favor so you get tax the max

In Canada, the tax bureaucrats from the CRA corrected my tax return to save me a couple of grand. Few years later, they did it again.

you assume the the fair market value of the sex I provide is $150 per hour, in which case my costs would be equivalent to my profits and therefore I would have $0 tax liability.  however as anyone can tell you the fair market value of a male providing sex to a sexy female hovers somewhere near $0 per hour.

regarding potatoes, this is not a barter exchange. you are receiving the potatoes for money from some source of income which presumably has already been taxed.  however there may be a sales tax attached to the transaction for it is not a natural right for me to feed myself and family from the division of labor in the society which I am a member of, and if government did not exist to protect sellers' property rights I could easily claim your potatoes as mine.

Indeed. Next thing you know we will need a license to make woopi or to take a dump in the toilet.

speaking of shit the tax man in sweden is called Skatt...

There is no difference because you're thinking about it incorrectly.

The IRS taxes INCOME. The IRS -- and most taxing agencies in the world -- define income extremely broadly. If you receive non-monetary favors in lieu of money to do something, you're still supposed to report that as income (if you don't know the monetary value of the favor, you make a reasonable guesstimate). If your sex is in exchange for a $1000 watch, then you report an income of $1000.

So the IRS is not taxing the medium of exchange directly; it is taxing however the value of the income you received in the exchange.

No. You receive $600 in income from the barter exchange. And then you deduct the $600 you gave in the barter exchange somewhere else on the return. The barter exchange therefore equals zero taxable income.

Let me get this straight:

Heidi Fleiss goes down for Tax Evasion and gets some time,
http://www.nytimes.com/1997/01/08/us/heidi-fleiss-given-37-month-sentence.html
and the Johns in these exchanges, were making unlawful deposits, and should get some too?

Seems queer to me.

In Germany they do: http://theweek.com/article/index/218808/germanys-remarkable-prostitution-tax-meter

Correct.

But don't forget this.

If you don't report the value of the income, then the IRS may come out and seize your property.  But in this case, the seizure would be of sexual favors.....

Sex is not a store of value, not a self sustaining medium of exchange in the ordinary sense
Is your question seriously meant?

that is not necessarily true, sex can create new life which is a store of value since human labor has value, therefor sex can create a store of value

So pregnancy is another form of "proof of stake"?
I hope I am not going to hell for that one.

depends on which State you live in, no? in some it may be proof of work?

i'm sorry to whoever i offend, this should be in the satire section.

I think it isn't proof of work until you go into labor...
 8)