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Title: Will IRS revise there guidelines on "virtual currency"? Post by: precrime3 on April 04, 2014, 02:18:01 AM I sure hope they do.... Also, what is the significance of the 15th? I do realize that's when taxes are due, but still... Is it like that "last nail in the coffin"?
Title: Re: Will IRS revise there guidelines on "virtual currency"? Post by: windjc on April 04, 2014, 02:23:33 AM I am sure they will eventually.
Everyone is griping and complaining about their "property" ruling. Well, first of all, it puts bitcoin holders at a 15% tax rate instead of up to 39%. This is a huge incentive for bitcoin as a store of value investment. Second, the government has no way of tracking if you bought a coffee at Starbucks with your bitcoin "property." This is just nuts. Of course an accountant is going to tell you that it matters, because that is their job, however, the IRS is not going to expect, nor have a way to enforce (despite their ruling) you to list every little incidental transactions of purchase you made with bitcoin. In fact, I believe that the IRS ruled bitcoin as property instead of currency because it was the easiest and quickest ruling. What did people expect the IRS to do? Create a new class of digital investment currency tax laws? Ha. The IRS is already understaffed as it is and they don't spend there time going around auditing people who don't make more than $200k a year anyway unless there is something ridiculously suspicious going on. Its just not cost effective for them. Title: Re: Will IRS revise there guidelines on "virtual currency"? Post by: precrime3 on April 04, 2014, 02:33:36 AM It is true that like only half the nation pays taxes. I would like to remain that half, as I don't care how small the chance is, an audit will pretty much ruin your life. I'm stuck in limbo, putting my btc into cold storage until they revise it.
Title: Re: Will IRS revise there guidelines on "virtual currency"? Post by: ElectricMucus on April 04, 2014, 11:09:25 AM In short: No
In detail: It's about as likely as the PBOC revising their ruling on banks not allowed to do business with exchanges. So no. Title: Re: Will IRS revise there guidelines on "virtual currency"? Post by: fonzie on April 04, 2014, 11:16:45 AM I just called them and they said: Sorry, no chance!
Title: Re: Will IRS revise there guidelines on "virtual currency"? Post by: segeln on April 04, 2014, 01:16:07 PM I am sure they will eventually. I agreeEveryone is griping and complaining about their "property" ruling. Well, first of all, it puts bitcoin holders at a 15% tax rate instead of up to 39%. This is a huge incentive for bitcoin as a store of value investment. Second, the government has no way of tracking if you bought a coffee at Starbucks with your bitcoin "property." This is just nuts. Of course an accountant is going to tell you that it matters, because that is their job, however, the IRS is not going to expect, nor have a way to enforce (despite their ruling) you to list every little incidental transactions of purchase you made with bitcoin. In fact, I believe that the IRS ruled bitcoin as property instead of currency because it was the easiest and quickest ruling. What did people expect the IRS to do? Create a new class of digital investment currency tax laws? Ha. The IRS is already understaffed as it is and they don't spend there time going around auditing people who don't make more than $200k a year anyway unless there is something ridiculously suspicious going on. Its just not cost effective for them. The main Problem is not the tax itself .It is the handling of bitcoin trading and keeping the records of gain or loss. This is terrible and the IRS is forcing the People to be tax fraudulent when it Comes to bitcoin Title: Re: Will IRS revise there guidelines on "virtual currency"? Post by: segeln on April 04, 2014, 01:17:45 PM I just called them and they said: Sorry, no chance! I just called them and they said: work in Progress ! Don`t worry be happyTitle: Re: Will IRS revise there guidelines on "virtual currency"? Post by: precrime3 on April 04, 2014, 01:54:52 PM I seriously doubt that IRS will, unless that petition gets signed. I doubt there are 100k based US miners that are aware of the petition sadly :P
Title: Re: Will IRS revise there guidelines on "virtual currency"? Post by: LostDutchman on April 04, 2014, 03:46:21 PM I am sure they will eventually. Everyone is griping and complaining about their "property" ruling. Well, first of all, it puts bitcoin holders at a 15% tax rate instead of up to 39%. This is a huge incentive for bitcoin as a store of value investment. Second, the government has no way of tracking if you bought a coffee at Starbucks with your bitcoin "property." This is just nuts. Of course an accountant is going to tell you that it matters, because that is their job, however, the IRS is not going to expect, nor have a way to enforce (despite their ruling) you to list every little incidental transactions of purchase you made with bitcoin. In fact, I believe that the IRS ruled bitcoin as property instead of currency because it was the easiest and quickest ruling. What did people expect the IRS to do? Create a new class of digital investment currency tax laws? Ha. The IRS is already understaffed as it is and they don't spend there time going around auditing people who don't make more than $200k a year anyway unless there is something ridiculously suspicious going on. Its just not cost effective for them. I think you may have forgotten about the roughly 13% self emplyment tax which will also be imposed on earning according to the ruling. I will be soon offering a legal solution for that one though! My $.02. ;) Title: Re: Will IRS revise there guidelines on "virtual currency"? Post by: Bit_Happy on April 05, 2014, 12:15:51 AM I am sure they will eventually. Everyone is griping and complaining about their "property" ruling. Well, first of all, it puts bitcoin holders at a 15% tax rate instead of up to 39%. This is a huge incentive for bitcoin as a store of value investment. Second, the government has no way of tracking if you bought a coffee at Starbucks with your bitcoin "property." This is just nuts. Of course an accountant is going to tell you that it matters, because that is their job, however, the IRS is not going to expect, nor have a way to enforce (despite their ruling) you to list every little incidental transactions of purchase you made with bitcoin. In fact, I believe that the IRS ruled bitcoin as property instead of currency because it was the easiest and quickest ruling. What did people expect the IRS to do? Create a new class of digital investment currency tax laws? Ha. The IRS is already understaffed as it is and they don't spend there time going around auditing people who don't make more than $200k a year anyway unless there is something ridiculously suspicious going on. Its just not cost effective for them. I think you may have forgotten about the roughly 13% self emplyment tax which will also be imposed on earning according to the ruling. I will be soon offering a legal solution for that one though! My $.02. ;) What legal solution, can you tell us any more? Title: Re: Will IRS revise there guidelines on "virtual currency"? Post by: LostDutchman on April 05, 2014, 12:32:28 AM I am sure they will eventually. Everyone is griping and complaining about their "property" ruling. Well, first of all, it puts bitcoin holders at a 15% tax rate instead of up to 39%. This is a huge incentive for bitcoin as a store of value investment. Second, the government has no way of tracking if you bought a coffee at Starbucks with your bitcoin "property." This is just nuts. Of course an accountant is going to tell you that it matters, because that is their job, however, the IRS is not going to expect, nor have a way to enforce (despite their ruling) you to list every little incidental transactions of purchase you made with bitcoin. In fact, I believe that the IRS ruled bitcoin as property instead of currency because it was the easiest and quickest ruling. What did people expect the IRS to do? Create a new class of digital investment currency tax laws? Ha. The IRS is already understaffed as it is and they don't spend there time going around auditing people who don't make more than $200k a year anyway unless there is something ridiculously suspicious going on. Its just not cost effective for them. I think you may have forgotten about the roughly 13% self emplyment tax which will also be imposed on earning according to the ruling. I will be soon offering a legal solution for that one though! My $.02. ;) What legal solution, can you tell us any more? I will soon have the text and website for my legal, ethical and easy to work offering ready; in fact, this weekend if all goes well. I will keep you posted and thank you for your interest! My $.02. ;) |