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Title: An obvious question I don't see asked anywhere Post by: fisharmor on July 21, 2010, 07:35:34 PM So, I'm installing this as soon as I get home, but here's the obvious question:
If I use bitcoin in the US for transactions where I procure or sell goods or services, how will I stay out of prison? Title: Re: An obvious question I don't see asked anywhere Post by: Quantumplation on July 21, 2010, 07:37:03 PM It's not a recognized currency, and thus must not be marked as income. However, once you trade from bitcoins to USD, you must declare it as income.
Title: Re: An obvious question I don't see asked anywhere Post by: fisharmor on July 21, 2010, 07:44:28 PM Everything I find on barter says that the IRS considers barter income to be taxable, and not reporting it is tax evasion.
Title: Re: An obvious question I don't see asked anywhere Post by: Elwar on July 21, 2010, 07:47:44 PM So, you report it as income when you receive it.
Just as you do when you sell something on e-bay and on craigslist. Title: Re: An obvious question I don't see asked anywhere Post by: Quantumplation on July 21, 2010, 07:52:52 PM Ah, didn't know that. Good thing I don't need to pay taxes yet. ^.^
Title: Re: An obvious question I don't see asked anywhere Post by: fisharmor on July 21, 2010, 07:58:59 PM So, you report it as income when you receive it. Just as you do when you sell something on e-bay and on craigslist. Yeah.... just like when I do that.... which I do every time I sell something on craigslist.... I read a short time ago on the IRS website that hobby income is not taxable unless you make a profit at it. But that's neither here nor there: I don't think anyone's fooling themselves about how serious the fedgov is about non-dollar denominated transactions... particularly not those who know who Robert Kahre is. Title: Re: An obvious question I don't see asked anywhere Post by: NewLibertyStandard on July 21, 2010, 09:38:35 PM Hobbies generally cost money. If you're making money, it's work.
Title: Re: An obvious question I don't see asked anywhere Post by: ichi on July 21, 2010, 09:51:51 PM Well, let's see here. We pay ~1 E+4 USD per year in cash to various people for cleaning, home repair, lawn care and so on. I strongly suspect that they don't declare that income. Multiply that by ~114 E+6 US households, and you get ~1 E+12 USD per year. That's about 10% of estimated 2010 US personal consumption expenditures -- 10.4 E+12 USD per year, according to the US Bureau of Economic Analysis (http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=5&FirstYear=2009&LastYear=2010&Freq=Qtr). Even discounting for honesty, that's a large share. And we in the US are probably more honest about such matters than most, yes? China? India?
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