If I were to use Bitcoin to buy something that doesn't lose value, such as gold - page 2.

OROBTC

legendary

Activity: 2926

Merit: 1863

...

My understanding is that my buying gold w/ BTC is taxable, I will give the info to our tax people later this year. I bought a 0.25 oz Gold Eagle using BTC when it (the BTC) was at a price close to what I paid for it. So any tax consequence will be negligible

If I buy gold now, it would be at a loss, as my average cost basis for my BTC is some $760. I could buy gold, and get a tax write-off.

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Buying gold is about the best use there is for BTC other than the ability to take it out of the country...

Grin

DeathAndTaxes

donator

Activity: 1218

Merit: 1079

Gerald Davis

Quote from: cryptoanarchist on April 27, 2014, 07:12:55 PM

Quote from: DeathAndTaxes on April 27, 2014, 07:04:41 PM

Quote

So besides that, I know that you can't get taxed if you spend bitcoin on items.

In the US by the current IRS guidance this is incorrect. Sell your BTC for dollars or use your BTC to buy gold both are taxable events based on the price of BTC at the time of the transaction.

And what is your evidence that those rules apply?

None. I don't care but the OP point was a way to avoid taxation. What is your evidence that any taxes are owed on BTC in any situation in any country? If you want to violate the tax law, then just violate the tax tax. If you intend to comply with the tax law then doing an interim conversion to gold changes nothing.

Either Bitcoin tx are taxable are they aren't. BTC -> GLD -> USD doesn't magically make it nontaxable, if BTC -> USD is taxable. If BTC -> USD is nontaxable because you believe (insert latest dubious scheme here) the it is already nontaxable so there is no need to convert to gold first.

cryptoanarchist

legendary

Activity: 1120

Merit: 1003

Quote from: DeathAndTaxes on April 27, 2014, 07:04:41 PM

Quote

So besides that, I know that you can't get taxed if you spend bitcoin on items.

In the US by the current IRS guidance this is incorrect. Sell your BTC for dollars or use your BTC to buy gold both are taxable events based on the price of BTC at the time of the transaction.

And what is your evidence that those rules apply?

DeathAndTaxes

donator

Activity: 1218

Merit: 1079

Gerald Davis

Quote

So besides that, I know that you can't get taxed if you spend bitcoin on items.

In the US by the current IRS guidance this is incorrect. Sell your BTC for dollars or use your BTC to buy gold both are taxable events based on the price of BTC at the time of the transaction.

BBQcopter

newbie

Activity: 39

Merit: 0

First of all, I know I'm going to have to pay taxes on my bitcoin. Yes, I know this is partially against what the foundation of bitcoin is etc. etc., but I believe just because you can do something doesn't mean you should. Risk/Reward is also devastating. I'd rather pay 28% on my gains than spend time in jail, or have a criminal record.

So besides that, I know that you can't get taxed if you spend bitcoin on items. I would want to buy something that doesn't lose a lot of value quickly, such as gold. If you have another idea for this, please let me know. Gold was just the easiest I could think of.

Situation: Bitcoin goes way up in a bubble like scenario, and I want to cash out. Could I buy something, like gold, and hold onto it for a year, then sell so I don't get short term capital gains? With long-term capital gains, I may actually be able to get into the 0% tax bracket, so I stand to gain a lot this way.

Is something like the above feasible? Or is there an easier way to do it?

Topic: If I were to use Bitcoin to buy something that doesn't lose value, such as gold - page 2. (Read 1661 times)