{"id":399293,"date":"2022-01-26T08:39:50","date_gmt":"2022-01-26T05:39:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/nfl-stars-massive-tax-bill-highlights-problems-with-btc-salaries\/"},"modified":"2022-01-26T08:39:50","modified_gmt":"2022-01-26T05:39:50","slug":"nfl-stars-massive-tax-bill-highlights-problems-with-btc-salaries","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/nfl-stars-massive-tax-bill-highlights-problems-with-btc-salaries\/","title":{"rendered":"# NFL star&#8217;s massive tax bill highlights problems with BTC salaries"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a38797c5a7d0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a38797c5a7d0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/nfl-stars-massive-tax-bill-highlights-problems-with-btc-salaries\/#Tax_troubles\" >Tax troubles<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># NFL star&#8217;s massive tax bill highlights problems with BTC salaries <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvMmRmMzIzNjktZmI4Ny00NjRhLWFkZDAtM2UxNWFmOWEyZjFiLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>NFL Star Odell Beckham Jr&#8217;s (OBJ) decision to take his $750,000 salary in Bitcoin <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have cost him dearly due to the market crash after he signed the deal. Owing to the vagaries of cryptocurrency tax laws and current prices, OBJ is estimated by some to have made 61% less than if he\u2019d taken his salary in fiat. <\/p>\n<p>The loss has highlighted the tax complications from receiving a salary or yield in cryptocurrency as crypto investors have to pay tax on the amount it&#8217;s worth when it was received, not what it&#8217;s worth when they lodge their tax return. <\/p>\n<p>On Nov. 12 last year, OBJ signed a one-year- deal with the Los Angeles Rams worth $750,000. In a promotional <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/obj\/status\/1462836953888534528\">Twitter post<\/a> partnered with CashApp, OBJ announced that he would be receiving 100% of his $750,000 yearly salary in Bitcoin (BTC).<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">It&#8217;s a NEW ERA &amp; to kick that off I&#8217;m hyped to announce that I&#8217;m taking my new salary in bitcoin thanks to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CashApp?ref_src=twsrc%5Etfw\">@CashApp<\/a>. To ALL MY FANS out there, no matter where u r: THANK YOU! I\u2019m giving back a total of $1M in BTC rn too. Drop your $cashtag w. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/OBJBTC?src=hash&amp;ref_src=twsrc%5Etfw\">#OBJBTC<\/a> &amp; follow <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CashApp?ref_src=twsrc%5Etfw\">@CashApp<\/a> NOW <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/ds1IgZ1zup\">pic.twitter.com\/ds1IgZ1zup<\/a><\/p>\n<p>\u2014 Odell Beckham Jr (@obj) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/obj\/status\/1462836953888534528?ref_src=twsrc%5Etfw\">November 22, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nAt the time, Bitcoin had been breaking new all time highs and just two days before OBJ signed the Rams deal, it reached its highest price ever of $69,044. Unfortunately for OBJ, Bitcoin is now down 46% from that high, currently worth $36,972. <\/p>\n<p>According to sports business analyst and senior executive producer for The Action Network Darren Rovell, OBJ\u2019s decision to take his full salary in Bitcoin may not have been the brightest idea. <\/p>\n<p>Rovell stated that OBJ\u2019s entire salary is now worth only $413,000 compared to the original $750,000.<\/p>\n<p>Once both Federal and State taxes are accounted for, at a cumulative rate of 50.3% Odell will only have earned $35,000 over the past two and a half months, which equates to just one Bitcoin. This is a far cry from the $90,000 he would have received if he\u2019d taken his salary in fiat. <\/p>\n<p>Bitcoin enthusiast <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JoePompliano\">Joe Pompilano<\/a>  (brother of influencer Anthony) argued that there were some major discrepancies between Rovells\u2019 take and actual fact including that he was paid weekly and not annually.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I know this fits your narrative, but it&#8217;s simply not true.<\/p>\n<p>1. The deal was announced on Nov 22nd, not Nov 12th.<\/p>\n<p>2. NFL players get paid weekly, not 100% upfront.<\/p>\n<p>3. Cash App paid him 7-figures in marketing money  \u2014 that&#8217;s more than his entire contract with the Rams.<\/p>\n<p>\u2014 Joe Pompliano (@JoePompliano) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JoePompliano\/status\/1485318642011193352?ref_src=twsrc%5Etfw\">January 23, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>However, Rovell said the weekly payments were irrelevant to the tax treatment: \u201cThe aggregate payment has been completed. It doesn\u2019t matter when he got paid.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tax_troubles\"><\/span>Tax troubles<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This isn\u2019t the first time that crypto assets have caused major taxation discrepancies, and as crypto adoption continues to grow internationally, it certainly won\u2019t be the last. During \u201ccrypto winter\u201d there were many stories of users who faced huge tax bills due to the price of assets when they received them, and not the rock bottom price they fell to by tax time. <\/p>\n<p>Although rules vary, it is common for taxation organizations to require the value of crypto assets be declared the moment they are received. This leaves investors open to a huge tax bill if the value of their crypto assets fall in value between the time of purchase and the eventual lodging of their tax return. <\/p>\n<p>In 2019 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.linkedin.com\/in\/adrian-forza-b23666ab?originalSubdomain=au\">Adrian Forza<\/a>, director of <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptotaxaus.com.au\/\">Crypto Tax Australia<\/a>, told local publication Micky the story of an Australian crypto investor who was forced to pay nearly five times the value of his coins in tax. <\/p>\n<blockquote><p>\u201cIt was a disaster\u2026 It was a really unfair outcome because he\u2019s basically received cryptocurrency and the value has dropped significantly and now he has to pay tax on money he doesn\u2019t have.\u201d<\/p><\/blockquote>\n<p><strong><em>Related: <\/em><\/strong><strong><em>TaxBit to offer free crypto tax forms with new network<\/em><\/strong><\/p>\n<p>Forza continued to say that the biggest issue with cryptocurrency taxation wasn\u2019t necessarily due to the laws themselves, with most issues arising from the lack of understanding of tax laws among crypto enthusiasts themselves:<\/p>\n<p>\u201cThe demographic is 25-to-40-year-old males and a lot of them probably haven\u2019t invested in shares or even seen an accountant before,\u201d he said.<\/p>\n<p>That may also be the case with blockchain-based play-to-earn <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a>s such as Axie Infinity. In one famous story a 22-year-old in the Philippines purchased two houses with the profits he earned from playing the game. <\/p>\n<p>Hopefully he spoke to a tax agent because now, both Philippine and international regulators are coming for those profits, warning the 2 million active players of Axie Infinity that any in-game transfer of crypto assets are legally classified as taxable events.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/nfl-star-s-massive-tax-bill-highlights-problems-with-btc-salaries\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# NFL star&#8217;s massive tax bill highlights problems with BTC salaries &#8221; NFL Star Odell Beckham Jr&#8217;s (OBJ) decision to take his $750,000 salary in Bitcoin appears to have cost him dearly due to the market crash after he signed the deal. Owing to the vagaries of cryptocurrency tax laws and current prices, OBJ is&#8230;<\/p>\n","protected":false},"author":1,"featured_media":399294,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvMmRmMzIzNjktZmI4Ny00NjRhLWFkZDAtM2UxNWFmOWEyZjFiLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,76276,74937,74858,75385,117],"class_list":["post-399293","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-payments","tag-bitcoin-price","tag-bitcoin-regulation","tag-sport","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/399293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=399293"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/399293\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/399294"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=399293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=399293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=399293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}