NFL star Odell Beckham Jr.’s decision to take a $750,000 salary in Bitcoin; seems to have cost him dearly because of a market crash; After he signed the deal. Due to cryptocurrency tax laws and current price volatility; Some believe that Odell lost 61% more than the salary it received at Fiat. This loss highlighted the tax implications for cryptocurrencies; Due to income or compensation; Crypto-investors should pay tax on the amount worth receiving it and not on it; How much it costs to file a tax return.
On November 12 last year, OBJ signed a one-year contract with the Los Angeles Rams; The cost of the agreement was $750,000. In a Twitter promotional post published in partnership with CashApp, Odell announced that he would receive $750,000, according to his entire annual salary in Bitcoin. At the time, Bitcoin was breaking new highs all the time. The OBJ Rams signed the deal; It reached its highest price, reaching $69,044. Unfortunately for OBJ, Bitcoin has fallen 46% from its current price. Its current value is currently $36,972.
Tax Issues
According to sports business analyst Darren Rovell; The OBJ’s decision to take his entire salary in Bitcoin may not have been the best. According to Darren, OBJ’s total salary stands at just $413,000. As soon as state taxes are accounted for; At a cumulative rate of 50.3%, Odell has generated only $35,000 in the last two and a half months; This is only one bitcoin, according to current data. This figure is far from the $90,000 he would have received if he had been paid in Fiat.
The Bitcoin enthusiast argued several significant discrepancies between Rovell’s opinion and fact, including that he was paid weekly and not annually. However, Rovell’s said the weekly taxes were inappropriate for tax treatment. The full payment is complete. Consequently, it does not matter when he paid for it.
This is not the first time crypto assets caused significant tax inconsistencies. Consequently, as the adoption of crypto continues to grow, this will certainly not be the last. During the crypto winter, there were many stories about consumers having to pay huge taxes when receiving assets because of the price at which the assets were received today and not because the price was reduced according to the tax time. Although the rules are different, it is common for tax authorities to require the cryptocurrency to be declared at the time of receipt.
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