Ever heard of Civil Obedience? The idea is that one complies with a questionable law to the letter, in order to force a change in the law. In this case the market can develop the appropriate software to generate the appropriate IRS forms and then let IRS deal with the paperwork burden of tracking millions of small capital gains and losses.
As far as I can see this is a perfect case for Civil Obedience.
PS: One should also include Bitcoin network transaction fees in order to accurately determine the tax cost basis to the last satoshi.
Topic: IRS's new guidelines for taxing crypto-currencies - page 2. (Read 1924 times)
This is great news. If the IRS can figure out a way to tax the shit out of Bitcoin it will be around forever. Hell, they'll probably promote it on the IRS website. Cigarettes are a massive killer of citizens every year but do they legislate it away, hell no. You can't get rid of that much tax revenue; the rich assholes with all the power would shut down the government out of spite.
FTFY. Remember kids, it's a big club. And you and I, are not in the club.
This is great news. If the IRS can figure out a way to tax the shit out of Bitcoin it will be around forever. Hell, they'll probably promote it on the IRS website. Cigarettes are a massive killer of citizens every year but do they legislate it away, hell no. You can't get rid of that much tax revenue; the government would shut down.
And how exactly will the IRS enforce capital gains tax? Good luck with that. They won't be able to do it, not easily at least. Sure, they can track when you exchanged the bitcoins, but it will be impossible to determine the exact value it was traded it. Different exchanges have different rates, and they also cannot prove what the rate was for private trades. You can claim you had your own custom exchange, or traded with someone for $1 cash per bitcoin.
Jeff Deist explains some of the compliance burdens of the IRS's latest guidelines for cryptocurrency and other electronic media of exchange.
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