Topic: Bitcoin is doomed. Thanks IRS!!! You Ass hats! - page 13. (Read 19754 times)

They used a wrong name for the class of money where bitcoin is included. It is cryptomoney for chrissake. Nothing virtual here. Article can therefore not be evaluated. Move along.

Show them you bought bitcoin at $1200 from some exchange, and now it's only worth $500 at coinbase. It's also worth $0 at Mt. Gox, the world's biggest exchange. The news talks about Mt. Gox as if it's the only exchange.

So I'm negative on capital gains. Will the IRS reimburse me?

In fact now that people and businesses know how to treat cryptocurrencies they will finally take the step to move in on it.
Many potential buyers have been waiting on the sideline for more regulation and guidance. Offer them a bargain and it will all be bought up, trigger a new bullmarket.

LOL, which planet?

Here's the problem with that analysis:  It assumes an extreme range of price of bitcoin.

Essentially, the IRS wants to capture the capital gains of speculators that buy early and cash out at much higher prices than they paid for it, as they would with any other speculative investment.

So there is a difference in fungibility if you have coins that you bought at $10, or $100 and trade at $600 or some future higher price.  That's a burden on speculators, and may slow down speculative investment.

However, if bitcoin is used as a currency -- that is, you hold amounts for a short time so you can trade, you won't see much in capital gains from the time you buy bitcoin at coinbase from your USD bank account to the time you spend it buying coffee.

We have the technology to add capital gains tracking to a wallet.   Computers are great at that kind of stuff.  At tax time, it would be as simple as printing out a 1099DIV-like form showing the capital gains/losses for the year based on all bitcoin transactions in the wallet and historical exchange data.  I suspect for most people using bitcoin as a currency rather than an investment are going to show not very significant gains, and it's lumped into that section on the tax return along with the small amount of dividends you might get from a money market account.

That is my rate this year. I was a little surprised and a lot happy. I pay dearly for the money I earn from working, but nothing this year for bitcoin. Thanks IRS, my 0% tax rate makes me 100% satisfied.

A ban would be a bad mistake.

Bitcoin is tanking and that is totally understandable. If they can't track and tax it, they might ban it

But the USA is the richest nation on the planet...by quite some way. This will have a negative effect on Bitcoin.

Having bitcoin classified as property rather than currency is the best possible scenario.  The capital gains tax rate is 0% for most people.  0%... hard to beat that.

It's not illegal. That's good news.

Remember, the IRS only taxes Americans. There are 248 nations.

Step 1) Go to Germany.

http://www.theatlantic.com/technology/archive/2014/03/why-bitcoin-can-no-longer-work-as-a-virtual-currency-in-1-paragraph/359648/

I hate to admit it, but this story makes a lot of sense.

We can't legally trade BTC for BTC, we taxes at every level because its property not currency.....

Can someone please provide another, hopefully more positive, way to look at this?