Is the MTGox - Coinlab deal in trouble? Yes. It is in litigation!

[ArticMine]

Since many feel that this deal can have an impact on the BTC / USD exchange rate I am posting a link to my post here in speculation.  https://bitcointalk.org/index.php?topic=147336.msg1636501#msg1636501

Any thoughts on the impact on the price if this deal were to get delayed or to collapse?  

Edit: It is not just in trouble. It is in litigation! https://bitcointalk.org/index.php?topic=193922.0

[vokain]

I, for one, welcome our new central Bitcoin banking overlords.

[lebing]

I, for one, welcome our new central Bitcoin banking overlords.

I'm torn - on the one hand I am freaking out about the impact this will have on the price and on the other hand I am not excited about 1099s/ disclosure.

[humanitee]

Someone mind explaining to me why you have to claim them on your taxes?
I thought legally Bitcoin was in a grey area at the moment.

[cbeast]

As long as I can use coinbase, I have little need for coinlab.

[lebing]

Someone mind explaining to me why you have to claim them on your taxes?
I thought legally Bitcoin was in a grey area at the moment.

It is legally grey as a currency. As an asset its very clear - when it increases above what you paid for it, you are supposed to pay taxes on that.

[inbox]

.

[humanitee]

Someone mind explaining to me why you have to claim them on your taxes?
I thought legally Bitcoin was in a grey area at the moment.

It is legally grey as a currency. As an asset its very clear - when it increases above what you paid for it, you are supposed to pay taxes on that.

Ahh, gotcha.

Thanks!

[arruah]

Too bad I lost all my bitcoins on a unfortunate internet super highway accident.

how it may be possible?

[Severian]

As an asset its very clear - when it increases above what you paid for it, you are supposed to pay taxes on that.

Horseshit.

[humanitee]

As an asset its very clear - when it increases above what you paid for it, you are supposed to pay taxes on that.

Horseshit.

Then say why. Great response. 

[lebing]

As an asset its very clear - when it increases above what you paid for it, you are supposed to pay taxes on that.

Horseshit.

key words: "supposed to"

[Severian]

Then say why.

I see the "you're supposed to pay your taxes" meme thrown around here like it's a magic charm or a spell uttered by the superstitious against an evil spirit. I wish people would grow a pair and, at least internally, ignore the fuckers that would tax them. You now have a tool that protects you from banks and their vassal governments. Act like it.

Great response. 

Saved it just for such a moment.

[humanitee]

Thank you for clarifying.

I was hoping you had a link with some techno-wizardry that said "no."

Oh well. Here's another question.. If you don't cash out, do you have to pay taxes?

[Severian]

Oh well. Here's another question.. If you don't cash out, do you have to pay taxes?

Even if you do cash out, what idiot would pay taxes on bitcoins?

[lebing]

Oh well. Here's another question.. If you don't cash out, do you have to pay taxes?

Even if you do cash out, what idiot would pay taxes on bitcoins?

If audited, you will have to explain how you sent 1k to japan and received 5 back. Doesnt matter where it came from.

[Severian]

If audited, you will have to explain how you sent 1k to japan and received 5 back. Doesnt matter where it came from.

What idiot leaves an auditable trail in Bitcoin? It was created to allow your financial life to be private.

[humanitee]

Oh well. Here's another question.. If you don't cash out, do you have to pay taxes?

Even if you do cash out, what idiot would pay taxes on bitcoins?

Just because I ask the question doesn't mean I intend to do it. I just want to know the legality of it.

[coqui33]

FWIW, here is are two paragraphs from a bitcoin explanation that I wrote some time ago (at http://ccwvslaw.org/item/1652):

Bitcoins are transferred directly and privately from one person to another. Unlike the transfer of gold, stocks, or bonds, you need not involve a bank or broker. This means that no one will ask you to prove your source of funds and demand that you fill out U.S. federal form 8300 if the value of the transaction exceeds $10,000. No banker or broker will secretly report the transfer on federal form 4789. No one will secretly report on federal form 4790 that the transfer crossed national borders. Finally, no one will send the IRS a copy of form 1099 reporting that you paid $100 for bitcoins, then sold them for $150, thereby owing capital gains taxes on $50.

On the other hand, although bitcons’ privacy makes it hard for the government to look over your shoulder, this does not reduce your taxpayer obligation. If you transact bitcoins in a way that uses over $10,000 in currency or that transfers that amount across a national border, or if you sell bitcoins (or anything else, for that matter) for more than you paid, then you have the civic duty as a citizen to voluntarily fill out the appropriate forms and report yourself to the government. Failure to do so is a federal crime.

Just sayin..

[nobbynobbynoob]

If you draw fiat through the US banking systems, the IRS can find out about it. Enter localbitcoins.com and the like. You should just pay all your taxes to your wonderful, benevolent government, however, because, you know, they give you free health care and edumakation and roadz, OMG roadz! And they protect you from those bad terrists too.