Now with their USD Wallet (offered in a growing list of approved states), one can hold dollars in their Coinbase account (via an FDIC-insured bank) and spend bitcoins from their account with instant buys from the USD Wallet.
In full compliance with IRS rules, those transactions need not be reported at all on one's income tax! Since the bitcoin buy and sale (disposition) are done simultaneously at exactly the same price -- and the taxpayer has no constructive receipt of the bitcoin -- it's not a capital transaction needing to be reported.
One can simply keep enough money in their USD Wallet to do all their bitcoin purchases and donations, and make all of those from that USD Wallet (instead of their normal bitcoin wallet) , and not report any of those on their taxes. Purchases and donations made with bitcoin from the regular Coinbase bitcoin wallet -- with coin held from prior purchase/receipt -- still must be reported as discussed at length since the IRS ruling came down last year.
PLUS THIS: This spending mode removes ALL the price volatility risk out of one's bitcoin spending!
In full compliance with IRS rules, those transactions need not be reported at all on one's income tax! Since the bitcoin buy and sale (disposition) are done simultaneously at exactly the same price -- and the taxpayer has no constructive receipt of the bitcoin -- it's not a capital transaction needing to be reported.
One can simply keep enough money in their USD Wallet to do all their bitcoin purchases and donations, and make all of those from that USD Wallet (instead of their normal bitcoin wallet) , and not report any of those on their taxes. Purchases and donations made with bitcoin from the regular Coinbase bitcoin wallet -- with coin held from prior purchase/receipt -- still must be reported as discussed at length since the IRS ruling came down last year.
PLUS THIS: This spending mode removes ALL the price volatility risk out of one's bitcoin spending!
I'm sorry, but I think this totally defeats the purpose of buying/owning/spending bitcoin.
In addition, I'm guessing there are numerous wallet holders out there who are not reporting anyway.
