Over Christmas, I worked on the first iteration of a site for calculating taxes for Bitcoin: BitcoinTax.us
Right now, the talk is mostly around how hard it is to calculate Bitcoin taxes or how to evade taxes using Bitcoin, but I think that will go away very shortly. Programmable money is going to change the landscape of taxes for the better.
Today, I have no idea how much taxes I’m going to owe for 2013 even though 2013 is over. I’m going to have to wait until me (or and accountant) spends hours and hours going over pieces of paper, plugging numbers into forms, and figuring out if things are correct. This is very inefficient.
In the future, I see a place where we know on Jan 1st what the tax liability is. Imagine companies using anonymous (but public) Bitcoin addresses to post tax withholdings, insurance payments, 401k Payments, and the rest of the check… you could write a script that calculated taxes on demand for the previous year and could even project in real time what your taxes would be for the next year.
It’s pretty amazing to think about…
See my post on Reddit for more info about the website.