Guess what: You also can't download movies and music "legally", but millions of Americans download hundreds of terrabytes of culture every single day, without any fear whatsoever.
Cryptocurrency liberates money in the same way that torrents liberated culture.
The governments are powerless against decentralization. Useless. And I personally hope no one bails their sorry asses out, because fuck those tyrants, liars, and slavers.
Topic: It is now next to impossible to spend bitcoins legally if your american - page 4. (Read 6586 times)
March 26, 2014, 05:40:19 PM
March 26, 2014, 05:40:12 PM
Why do so few people on this website know the difference between your and you're ?
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March 26, 2014, 05:39:57 PM
a cup of coffee is just a metaphor.
as of now you can't buy anything with bitcoin legally without first checking your capital gains status.
sure you may get away with it if the amounts spent are small, but as far as the law is concerned you are a criminal.
as of now you can't buy anything with bitcoin legally without first checking your capital gains status.
sure you may get away with it if the amounts spent are small, but as far as the law is concerned you are a criminal.
That was always the case unless you thought you could buy for $100, sell it for $1000 and pay no taxes on the difference. Were you actually stupid enough to believe that?
This thread is still pointless, and the headline is absurd. Using a computer to track capital gains when that computer necessarily already has all of your bitcoin transactions recorded since you can't possibly engage in a bitcoin transaction without a computer is not even close to "next to impossible."
March 26, 2014, 05:39:41 PM
I have a anonymous address. The IRS has no way to know what im doing with my btc.
Bingo. Smart crypto players keep a small percentage of their crypto wealth in a public (government visible) account, such as Coinbase, and the other 90-95% of their wealth in an anonymous blockchain address.It is very unlikely they were successful at remaining anonymous from the NSA+GCHQ. However, they wouldn't know it. Later they will find out they were not anonymous when the handcuffs are applied to their wrists.
Tor, mixers, VPNs are honey pots.
March 26, 2014, 05:39:12 PM
a cup of coffee is just a metaphor.
as of now you can't buy anything with bitcoin legally without first checking your capital gains status.
sure you may get away with it if the amounts spent are small, but as far as the law is concerned you are a criminal.
as of now you can't buy anything with bitcoin legally without first checking your capital gains status.
sure you may get away with it if the amounts spent are small, but as far as the law is concerned you are a criminal.
Bingo, that's the biggest problem. Sure many Americans may hate laws, but for the most part, most try to comply because the alternative can be quite difficult to deal with.
But then again, it's just "white collar" crime and it's much harder to be slapped with a felony for that. Of course, there's also garnishment...
March 26, 2014, 05:38:09 PM
You don't need to check anything before making a purchase with bitcoin. You just need to use a wallet that lets you export a csv of transactions and import those into your tax software the next year and let it compute the capital gains that you owe. If you exchanged an amount of bitcoin with a gain of $1 for a cup of coffee you don't need to send the IRS any paperwork or its $0.15 until April 15 the next year.
March 26, 2014, 05:34:57 PM
a cup of coffee is just a metaphor.
as of now you can't buy anything with bitcoin legally without first checking your capital gains status.
sure you may get away with it if the amounts spent are small, but as far as the law is concerned you are a criminal.
as of now you can't buy anything with bitcoin legally without first checking your capital gains status.
sure you may get away with it if the amounts spent are small, but as far as the law is concerned you are a criminal.
March 26, 2014, 05:34:41 PM
I have a anonymous address. The IRS has no way to know what im doing with my btc.
Bingo. Smart crypto players keep a small percentage of their crypto wealth in a public (government visible) account, such as Coinbase, and the other 90-95% of their wealth in an anonymous blockchain address. March 26, 2014, 05:31:02 PM
Why would I report gains on a cup of cofee? I have a anonymous address. The IRS has no way to know what im doing with my btc.
March 26, 2014, 05:30:57 PM
no this thread is not pointless.
i don't have to keep track of any capital gains when i use fiat currency why should i do so with bitcoin.
this is a clear attempt by the government to make bitcoin unattractive to use as money.
i don't have to keep track of any capital gains when i use fiat currency why should i do so with bitcoin.
this is a clear attempt by the government to make bitcoin unattractive to use as money.
Are you sure? I'm not familiar with US tax laws, but in the UK I'm fairly certain I need to keep track of any capital gains I make (or lose) when I trade fiat.
when you buy coffee with USD you don't need to check if the dollar index was higher or lower when you obtained the USD.
but as of this new legislation you do have to do this with bitcoin.
Sorry, my mistake (I've been catching up in the meantime) - I hadn't realised the scenario was a coffee. I guess all I can do is echo the earlier "speak to a tax professional": I doubt HMRC would require reporting a coffee on my tax return, but I genuinely don't know - and the IRS may well be much stricter anyway. Personally, I wouldn't mention that hypothetical coffee to my accountant.
March 26, 2014, 05:24:55 PM
no this thread is not pointless.
i don't have to keep track of any capital gains when i use fiat currency why should i do so with bitcoin.
this is a clear attempt by the government to make bitcoin unattractive to use as money.
i don't have to keep track of any capital gains when i use fiat currency why should i do so with bitcoin.
this is a clear attempt by the government to make bitcoin unattractive to use as money.
Are you sure? I'm not familiar with US tax laws, but in the UK I'm fairly certain I need to keep track of any capital gains I make (or lose) when I trade fiat.
when you buy coffee with USD you don't need to check if the dollar index was higher or lower when you obtained the USD.
but as of this new legislation you do have to do this with bitcoin.
March 26, 2014, 05:24:35 PM
...the mere fact that people need to worry about the issue of reporting capital tax gains when buying things in a store is going to push people out of using bitcoin as money.
The point of ZGL is to help eliminate that worry.
…the mere fact that any transaction could be a ZGL transaction and that it is impossible to tell from blockchain data alone means something too.
March 26, 2014, 05:20:13 PM
So would I be right in suggesting if you lost money with MTGOX it is tax deductable as a loss? Surely it has to work both ways?
Mt. Gox probably qualifies as a casualty loss since it was a theft. So you'd just deduct the entire amount (assuming nothing gets paid out).
March 26, 2014, 05:19:45 PM
no this thread is not pointless.
i don't have to keep track of any capital gains when i use fiat currency why should i do so with bitcoin.
this is a clear attempt by the government to make bitcoin unattractive to use as money.
i don't have to keep track of any capital gains when i use fiat currency why should i do so with bitcoin.
this is a clear attempt by the government to make bitcoin unattractive to use as money.
Are you sure? I'm not familiar with US tax laws, but in the UK I'm fairly certain I need to keep track of any capital gains I make (or lose) when I trade fiat.
March 26, 2014, 05:19:16 PM
So would I be right in suggesting if you lost money with MTGOX it is tax deductable as a loss? Surely it has to work both ways?
Yes, I would think so. The difference between your cost basis and the current value (zero for those lost coins - unless the "Magical MtCoin Coin Finding Fairies" (TM) keep finding them, that is...) would be considered a Capital Loss from the way I understand it.
March 26, 2014, 05:17:30 PM
is there anyway for them to keep track of how much u originally bought the bitcoin for? i mean theres no way to prove if u bought for .01$ or 1200$ ? right?
That's what I was thinking. Say the IRS says anything about spending btc, then the person just says they bought in at $1200 and writes off the loss on their taxes.
Were you audited, you would have to prove that you bought it at $1,200. Otherwise, the best case scenario for you will be if they assume you got it for free and don't hit you with a tax penalty.
March 26, 2014, 05:15:44 PM
Notice the only discussion of renouncing US citizenship is listed under the "travel" section of the government.
http://travel.state.gov/content/travel/english/legal-considerations/us-citizenship-laws-policies.html
That's because, up till now if you reside in US-government occupied territory (including entire continental USA), you have no choice!
"You live on this land, you obey our rules, you give us our cut, or we treat you as an enemy of the state."
Sound familiar? Yeah, that's right - it's the logic of the fucking mafia! "we own this property. You live here, we own you".
Cryptocurrency is eroding this neofuedalist bullshit, and exposing the lie - the injustice of wealth extracted at the point of a gun.
In the near future, as the costs of being a citizen pile on, and the benefits dwindle, I expect many current residents of the USA will be renouncing their citizenship.
As we rob nation-states such as the USA of their power, this paradigm will shift toward respecting the natural rights of individuals, and away from the tyranny of central authority.
http://travel.state.gov/content/travel/english/legal-considerations/us-citizenship-laws-policies.html
That's because, up till now if you reside in US-government occupied territory (including entire continental USA), you have no choice!
"You live on this land, you obey our rules, you give us our cut, or we treat you as an enemy of the state."
Sound familiar? Yeah, that's right - it's the logic of the fucking mafia! "we own this property. You live here, we own you".
Cryptocurrency is eroding this neofuedalist bullshit, and exposing the lie - the injustice of wealth extracted at the point of a gun.
In the near future, as the costs of being a citizen pile on, and the benefits dwindle, I expect many current residents of the USA will be renouncing their citizenship.
As we rob nation-states such as the USA of their power, this paradigm will shift toward respecting the natural rights of individuals, and away from the tyranny of central authority.
March 26, 2014, 05:14:52 PM
there is no way the IRS will allow people to avoid paying taxes using this trick.
if this really catches up i am sure they will clarify that the determining exchange rate for tax purposes is the median of all inputs or something of that sort.
This is neither a trick nor a method to avoid paying taxes. You would report the same amount of capital gains taxes either way, but this has the potential to significantly simplify accounting for all parties involved.
this requires that my wallet actually has enough bitcoins obtained when the exchange rate was lower.
the mere fact that people need to worry about the issue of reporting capital tax gains when buying things in a store is going to push people out of using bitcoin as money.
March 26, 2014, 05:13:43 PM
So would I be right in suggesting if you lost money with MTGOX it is tax deductable as a loss? Surely it has to work both ways?
March 26, 2014, 05:01:29 PM
there is no way the IRS will allow people to avoid paying taxes using this trick.
if this really catches up i am sure they will clarify that the determining exchange rate for tax purposes is the median of all inputs or something of that sort.
This is neither a trick nor a method to avoid paying taxes. You would report the same amount of capital gains taxes either way, but this has the potential to significantly simplify accounting for all parties involved.
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