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These rules are already well established because businesses who transact globally deal with this everyday. When you actually dispose of your coins, by selling or spending them, you have to account for the gain / loss on the coins you use. This requires record keeping, which is probably the biggest issue for non-business users. Hopefully the IRS and other agencies will issue simplified rules, but they certainly aren't going to look the other way if you have large gains from any activity.
Agreed Pale.
What 10c said, is why we pay our officials, to work these things out. At least we have declared something.
I agree but you have to let the fiat conversion out of the equation.
In an ideal world I could pay for food at every store with btc, pay for rent (denominated in BTC) and the rest of it...
so if you don't sell them it's hard to tax them.
as an example:
I walk in to the local Benz dealer and buy that new E-class.
E-class=X BTC but E-class=Y euro. Now the IRS taxes on the conversion rate at the point in time you made the purchase.
This would lead to shit load of work for them.
an other problem is that when I walk in to the dealership to buy that car vat (and the illegal according to EU law) BMP are already included in the sales price. so now what?
Can we pay our officials in BTC?
