Topic: Bitcoin is doomed. Thanks IRS!!! You Ass hats! - page 10. (Read 19771 times)

I agree. If you dont allow them extort your money, the state can stick you in prison and screw up your life. So pay your tax, but be as vocal as possible to inform people how disgusting and degrading taxtation is.

That's kind of silly, since there would be no value in using bitcoin.  It makes it a ponzi scheme, where the smart sell to the stupid and cash out before it collapses.  Speculators provide a service to bitcoin, by giving it value.  When it has value, it can be used as a means to trade for goods and services.

Gold is also used for jwellery and ornaments, very good conductor, heat insulator

I agree with that to a point...however, it is worth using it to make a micropayment of say 2 cents to instantly read some content on the internet (something not currently possible with existing payment systems because of unreasonable high minimum fees).

Which means tracking capital gains or losses "could" be a stumbling point for this "best use" of the technology. But I still believe that a bit of code can solve this problem to provide the necessary tracking and documentation.

No way.  I can't use gold for daily purchases.  That doesn't stop it from being worth a rather huge amount per ounce.  Bitcoin, even if accepted by no merchants, can achieve a price in the tens of thousands of dollars per coin.

For someone who is dubious about not completely complying with the law, it's not going to be that big of a deal to run your wallet through a program that issues a statement of your short term and long term capital gains, which you can put along with the reports from your fiat interest-bearing accounts.

Well, you are simply flat out wrong in at the very least one case that I am intimately familiar with (namely my own.)

Using a globally distributed and persistent blockchain entry to by a pack of Skittles is about the most brain-dead use of resources that I've ever heard of.  This is the proverbial use of a sledgehammer to kill a fly.  And again, it would change the nature of the solution dramatically were it to become the norm (much to the delight of the Googles of the landscape.)

Well most entities don't report transactions at the transaction level to the IRS.  If that were the case then nobody would ever cheat on their taxes when it comes to cash transactions.   It would also mean that 99.999999999999999999999% (yes I know that is too many nines) of people wouldn't pretend they have no use tax due in states which "require" it.

Generally speaking only when an entity pays YOU do they report that to the IRS (most commonly in the form of W-2, or 1099).  There are a few examples but they tend to be things which act as deductions for the reportee (student loan interest, property taxes paid, etc).  For example if you buy a TV at best buy, there is nothing best buy reports to the IRS.

The reality is almost nobody is 100% compliant with the tax code either through wilful non-compliance (use tax is pretty common), errors due to the complexity, or ommissions the accuracy rate is essentially 0%.  That being said I am not advocating people assume they can always cheat and not get caught but lets use some common sense.  If you buy for a $20 domain name on namecheap with bitcoins and fail to record that as a capital gain there isn't much chance you are going to get "caught" (caught implies IRS would even be looking for that and they won't).  By the letter of the tax law you should report it but if you don't it is very likely nothing will happen and if somehow you did get caught you could always argue good faith effort and simply pay the taxes due.  Now on the other hand if you buy a bunch of Bitcoins at $0.01 each and now they are worth $40M and you plan to buy a yacht to "avoid taxes" well you probably should consult a CPA and there is a very high chance you will get caught and when you do you will be hit with fines and penalties.

I think the property classification is dubious, currency isn't property for tax purposes, neither are bearer instruments, stored value (gift cards), or even casino chips. On the other hand the idea that the IRS is going to demand records on all transactions (even ones where there is no legal requirement to keep records) in order to catch all the $1.38 in missing taxes on capital gains from spending bitcoins for a video game is kinda silly.

A rather poor way to 'fight the man' would be to give him an opportunity to throw me in jail and confiscate all my property.  If anything that would make the problem with 'waste and abuse' (which IS a genuine problem BTW) even worse.  There are more effective ways, but they involve a chain of planning which consists of more than one link.

the only reason bitcoin is a store of value is because people anticipate it will be useable for daily purchases.

Yes... i'm sick of the parasites.

ok, so lets all bow down like submissive pussies.
Then govt can squander everyones hard earned money on pointless shit and fuck the planet up even more.

Which I suspect will lead to less "short term" speculation in Bitcoin...which is perhaps likely to tend towards being better for Bitcoin in the "long term"?

Only for long term capital gains.  Short term capital gains (asset held 364 or less days) is taxed at your regular income rate.

I love how people shit themselves when some dumb govt agency threatens them.

Ya, we seem to be approaching agreement on a fair number of points after all of these years.  Probably we never were that far off in the first place in spite of having different centers of mass.  I'm sure we both agree that it's been good to be a Bitcoin enthusiast, and one with some analytical bent, over the last few years.

I love how internet tough guys who's net worth amounts to a beater Honda Civic spout off about how they plan to stick it to the man...and somehow feel that everyone else should do so as well if they were not 'cowardly' or 'stupid'.

From your interest-bearing bank account?   If you feel more comfortable with the banker preparing and giving you your 1099DIV for your tax return.

Seems to me one of the memes behind bitcoin is "be your own bank".   Part of that responsibility generating your own reports for your "interest bearing" bitcoin wallet, so you can pay your tax obligation legally.  It seems to me that a bitcoin user has the technology and can find the software to do this himherself.  

Ya, but you gotta have enough BTC to pay your living expenses so that you stay in the lower two tax brackets....and wish to part with them.

I've not done my taxes yet, but I'm anticipating paying a noticeable amount of tax for 2013 because I had the mis-fortune of earning money (hard to avoid.)  In 2014 I do intent to fall into the lower brackets for earned income and enjoy a fairly healthy influx of capital for fun stuff.  At least if the price does another spike...else I'll HODL and live with what I've pulled already this year.

(Std disclaimer:  Seek qualified tax advice and not this posting on a forum.)

---

As an aside, I feel that the U.S. has basically saved Bitcoin with this ruling.  I've long relied on the world's governments to 'save' Bitcoin by making it illegal, but this is even better.  Bitcoin would change to something quite different if it had to support the load of a large exchange economy.  If it remains a vehicle for speculation (which happens off-chain) and moving relatively large blocks of value around, it could remain similar to it's original implementation in terms of being peer-2-peer.

The USA is the largest debtor nation.

IRS wants to tax the shit out of everything because that's all they know.