Topic: Bitcoin is doomed. Thanks IRS!!! You Ass hats! - page 5. (Read 19754 times)

Check out the concept of ZGL wallets and coins here: https://bitcointalksearch.org/topic/zgl-wallet-achieve-zero-gainloss-for-tax-purposes-with-coin-control-531135

This guidance was a positive as it gives clarity to larger players interested in entering the bitcoin space.

I read a few pages of this thread, and it is obvious most of you have no idea what this actually means.

To give a simple example, it's basically equivalents to require a business (walmart, amazon or mom&pop) OR an individual to file and report EVERY SINGLE bitcoin transaction - what you earned and spent, on schedule D etc.. for capital gain consideration. So if got my paycheck that is 10BTC, spend 0.05BTC on milk, 1BTC on xbox, etc.. i must file each line item detailing the cost basis (usd/btc when i obtained the 10 bitcoin paycheck) and gain/loss (usd/btc) when i spent the said 0.05BTC for milk, xbox etc..

Obviously that can never function.

It effectively in 1 fell swoop destroyed bitcoin as a unit of currency(that can be used for goods/services) in the USA, AND ensures the dollar will never be replaced or lowered in the foodchain.

I guaranteed you companies like overstock and tigerdirect are now having a facepalm moment, consulting their tax attorneys on how to report this mess on their taxes.

It is bad, it removes the main function of bitcoin - as a currency.  Now bitcoin can only be used as a store of value like precious metals, but that only work if people still perceive it has value.  

If you are nervous, you should be. How this all unfolds in the next 12 month will have a material impact on bitcoin and crypto currency as a whole.




no it's not the best possible scenario, what have you been smoking exactly?

+1

I don't get why everyone is incensed by this tax? Of all the unfair taxes you pay, all the unholy rules to keep you (the little man) out of markets, why are you complaining about capitol gains? Those are rich guy taxes. You pay more on the money you earn from hard work than capitol gains. Now if your problem is with how the tax money is spent, then I understand your grief. But this is about the best ruling we could hope for.

If Bitcoin dies, America is fucked. FUBAR. Bankrupt. Dead country walking.

https://www.youtube.com/watch?v=dQdmsL147j0

Cryptocurrency is literally the only hope for Americans today.

OP = clueless frightened speculating poorper, who was praying for a get-rich-quick scheme, and is now panicking because it's taking longer than they thought.

China will crash you

I also don't consider this to be anything spectacular and in no way detrimental to Bitcoin. It is just this time because price is down and people panicking which makes the conversation tense.

if you happen to make a lot on trading or mining you pretty much have to leave the states now.

Just chill out gosh! lol 

I don't think Bitcoin can be doomed  due to being tax classified as 'property'. I think this is a positive development as a huge tax lacuna has been removed and Bitcoin has received a perfectly LEGAL status.

In medium to long term this classification should be quite beneficial to the Bitcoin price as considerable number of property investors will likely turn to Bitcoin in order to diversify their portfolios (same tax rate as property - finite supply - far better capital gains ).

On the other hand, when Bitcoin is used to buy everyday merchandise (e.g. grocery) by public, there should not be a problem with capital gains calculations on each small or large transaction because simple and free Bitcoin accounting Apps can take care of it automatically and seamlessly - without the user needing to record transactions. This is as good as it gets.

No..... but it is more than half of the bitcoin market.  yes.... seriously, it is. So, when something happens in America, attention needs to be paid.

I've got cubes listed on Ebay, thinking of yanking my auction. I know I can turn around and buy an Antminer, sell low buy low, but it seems crazy that cubes are selling so cheap. I mean it makes sense, it's where the market it at, but I'll be damned I was turning down offers on cubes last week for $200- should have just sold them all at that price. I'm just looking to have fast turnaround and get another Antminer hooked up, but don't want to run these cubes in the summer and don't have any power outlets left in my apartment.

Just showed a few people my miners, the usual bitcoin is the thing that drug dealers use, they think it is crazy, but then I mentioned how the irs is taxing it, and that is when they took interest and realized it is legitimate.  Especially with the tax laws, you can basically blow up to 3 grand on bad purchasing, alot more if you have investments and other shit I guess (i'm not an accountant so that could be complete bullshit)
Then they asked if i'm making money, I said once upon a time, lmao how embarrassing ....    
 

This says it all for miners, not a single rig breaks even on the list at current rates. https://tradeblock.com/mining/ Bear in mind that some big rigs aren't on that list as they don't yet exist and are pre-order and that is the only way to get a competitive rig...so many people are locked in now and difficulty will rise even if not as fast as their estimates.

Resale of rigs won't be great, who will want one ?

The current situation is pretty much a dark hole for miners, losing out on just about everything, coins mined slashed in value, rigs worth less, future hardly worth the juice. In the U.S. ..some tax paperwork to sort out to possibly recover losses, elsewhere just losses. Even if we don't sail down past 400 like we did past the 500 everyone was bleating we'd bounce back from.

If you pre-ordered with bitcoin the chances are you won't see a refund, Paypal you have a shot...that's ironic.

Who's left that can afford to mine? The big boys. Producing rigs at cost, or buying them ..and with access to dirt cheap power.
That was never the idea was it, to create a few large entities controlling most of the coin production?

^TRUTH.

Especially when you are filing "business" activity and show a loss, after too many times of doing that the IRS will force you to prove your business is not a "hobby". If they determine it to be a hobby then you need to pay taxes on all the income but can only claim expenses if you itemize and exceed a certain amount of gross income. If you have a day job that pays pretty well it basically means you eat it when filing hobby income.

When the value of what you mine halves, it makes a difference. Obviously.

True, but it's got a hell of a habit of fucking the rest of us up.

nonsense article. point blank:

Reason #1 - gold, coffee, silver, wheat, palladium, corn, etc are all examples of property, and still they all are fungible

Reason #2 - no government rule will prevent bitcoin to be bitcoin

tax can be minimized to near zero ask apple