Can I expense crypto?

[VolcanoMan]

I have a business and another business only takes crypto payments.

The problem with this is as far as I know I have to make this payment off the books so I’m effectively paying double and then you add in fees and I’m paying over 2x.

is there any way a US business can pay in crypto on the books or is it not a viable solution at this point in time.

thanks any replies would be appreciated

 

[lotsofmoney]

Why are you paying double than the normal amount?

 

[VolcanoMan]

Why are you paying double than the normal amount?

For my accounting (online business) Im not sure I can prove I paid another business legitimately if I purchase btc with a business account and send it to a btc wallet. The rules for business accounts are very strict here in USA. It would look very suspicious as I could be siphoning cash into a Bitcoin wallet for tax evasion purposes so I believe I have to pay with btc off the books. Therefore I can’t deduct the payment as a business expense and in California we pay about 50% taxes so if I pay off the books it’s effectively double.

im not a tax expert so I’m asking what I can do here.

 

[seomaster5]

For my accounting (online business) Im not sure I can prove I paid another business legitimately if I purchase btc with a business account and send it to a btc wallet. The rules for business accounts are very strict here in USA. It would look very suspicious as I could be siphoning cash into a Bitcoin wallet for tax evasion purposes so I believe I have to pay with btc off the books. Therefore I can’t deduct the payment as a business expense and in California we pay about 50% taxes so if I pay off the books it’s effectively double.

im not a tax expert so I’m asking what I can do here.

How about having a separate wallet, get payments from your clients in that wallet and using that wallet to pay your suppliers ?

 

[VolcanoMan]

How about having a separate wallet, get payments from your clients in that wallet and using that wallet to pay your suppliers ?

This is a good idea if I was in a bit less regulated of an industry dealing with smaller amounts.

Unfortunately I can't do this option as the payments I receive are from relatively large companies that won't pay in crypto. Even if they did agree to pay me out in crypto the irs would be notified about it given the amounts and I would be back to square one.

I had a solution actually which was very creative but the people i was dealing with didn't want to go through the hassle.

So there are ways to avoid if you are willing to be VERY creative and trusting with business partners.