Things getting interesting once we past $100

[deathcode]

So now that there's another "bubble" at full speed, I'm reaching a point where crossing $100 will mean that me as well as others are making some serious money (I'll leave up to you to define what serious money is)
My concern now is, what if i want to sell and withdraw the money to my US Bank Account.
How do I avoid uncle sam to stick its hand in my cookie jar and takes the tax share?
What if I don't report it?
What if I transfer small amounts ($1000 at a time ever week or so..)
Any accountants in the forum to help me do the laundry?

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[hdcafe]

buy goods and service with bitcoin directly.

[evolve]

How do I avoid uncle sam to stick its hand in my cookie jar and takes the tax share?
What if I don't report it?

Face to face trades.

Of course, not paying your share into a system that you benefit from makes you a freeloader (or at the very least a leech).

[Vladimir]

Of course, not paying your share into a system that you benefit from makes you a freeloader (or at the very least a leech).

tax bankers first

[SgtSpike]

How do I avoid uncle sam to stick its hand in my cookie jar and takes the tax share?
What if I don't report it?

Face to face trades.

Of course, not paying your share into a system that you benefit from makes you a freeloader (or at the very least a leech).

I'll gladly pay the transaction fees/withdrawal fees of trading my bitcoins into USD and then transfering USD to my bank account.
I'm paying  my share to the system I benefitted from, BTC that is. I didn't benefit from USD.

So you don't use roads?  You don't take advantage of the electrical grid?  You aren't protected by the US army?  You won't receive social security?

/devilsadvocate

[Jaw3bmasters]

buy goods and service with bitcoin directly.

Agreed.

That's the cost of transferring your wealth into "uncle sam" system.

Use Bitcoin directly. Now is a good time for a real BTC debit card.

[desired_username]

Check with a proper accountant. I pay 16% on BTC income which is not bad at all compared to the usual 60% we're forced to pay on other activities (eg. being employed in a company).

[johnyj]

See the FinCEN statement? If you use bitcoin to directly buy things, you don't need to pay anything

[cedivad]

Check with a proper accountant. I pay 16% on BTC income which is not bad at all compared to the usual 60% we're forced to pay on other activities (eg. being employed in a company).

%60? I work in a company and I don't get taxed %60.. hell not even the highest tax brackets in the US get taxed %60.
Are you a slave?

try to come to italy

60% is rather good here.

[SgtSpike]

Check with a proper accountant. I pay 16% on BTC income which is not bad at all compared to the usual 60% we're forced to pay on other activities (eg. being employed in a company).

%60? I work in a company and I don't get taxed %60.. hell not even the highest tax brackets in the US get taxed %60.
Are you a slave?

try to come to italy

60% is rather good here.

And yet they still have to confiscate a portion of Italian's savings accounts despite the insane tax rates.

[salfter]

You won't receive social security?

/devilsadvocate

Most of us won't...that Ponzi scheme is unsustainable on its current course.

/reality

[cedivad]

Check with a proper accountant. I pay 16% on BTC income which is not bad at all compared to the usual 60% we're forced to pay on other activities (eg. being employed in a company).

%60? I work in a company and I don't get taxed %60.. hell not even the highest tax brackets in the US get taxed %60.
Are you a slave?

try to come to italy

60% is rather good here.

And yet they still have to confiscate a portion of Italian's savings accounts despite the insane tax rates.

We have one of the bigger private savings in the world, with a low percentage of private debts. They need to find a way to really crash our economy.

[Sage]

How do I avoid uncle sam to stick its hand in my cookie jar and takes the tax share?
What if I don't report it?

Face to face trades.

Of course, not paying your share into a system that you benefit from makes you a freeloader (or at the very least a leech).

I'll gladly pay the transaction fees/withdrawal fees of trading my bitcoins into USD and then transfering USD to my bank account.
I'm paying  my share to the system I benefitted from, BTC that is. I didn't benefit from USD.

So you don't use roads?  You don't take advantage of the electrical grid?  You aren't protected by the US army?  You won't receive social security?

/devilsadvocate

God are you really so Naive to think the income tax actually pays for those?

[Sage]

Solution:  Avoid the dollar like the plague to humanity it has become.

If you're selling bitconi move to gold, silver, platinum, litecoin, namecoin (whichever you feel is the best deal).  Do it direct without ever touching the dollar.

[bubblesort]

Don't bother with the money laundering.  Aside from the ethical and legal peril you create doing that, there really is no point.  You would be trading a strong currency for a weaker one, which only makes sense if you are going to spend the money immediately.  Financiers and investors who work overseas make transfer payments like that all the time when they want to build a factory in China or buy foreign stock in Pesos.  When they do it they hold the strong currency as long as they can and when they transfer it into the local currency they spend it as fast as possible.

If you want a solid store of value buy durable goods with your bitcoins directly.

[pyra-proxy]

So now that there's another "bubble" at full speed, I'm reaching a point where crossing $100 will mean that me as well as others are making some serious money (I'll leave up to you to define what serious money is)
My concern now is, what if i want to sell and withdraw the money to my US Bank Account.
How do I avoid uncle sam to stick its hand in my cookie jar and takes the tax share?
What if I don't report it?
What if I transfer small amounts ($1000 at a time ever week or so..)
Any accountants in the forum to help me do the laundry?

Make sure you are moving LESS than $10k per month is the most important (There is a daily limit as well but can't recall what that is, so I'd double check that... I think it's $3K per day but don't quote me on that.....),  after that if you need to move more (and I kind of would recommend this at the $5k+ mark anyway) start buying goods/services directly, great opportunity to start using pre-paid credit cards, gift cards, etc. as these will remain untracked, just make sure you deal with reputable vendors not ones fencing stolen cards otherwise you still may find your way to the wrong side of the law but in a worse kind of way!

[Dalkore]

How do I avoid uncle sam to stick its hand in my cookie jar and takes the tax share?
What if I don't report it?

Face to face trades.

Of course, not paying your share into a system that you benefit from makes you a freeloader (or at the very least a leech).

I'll gladly pay the transaction fees/withdrawal fees of trading my bitcoins into USD and then transfering USD to my bank account.
I'm paying  my share to the system I benefitted from, BTC that is. I didn't benefit from USD.

So you don't use roads?  You don't take advantage of the electrical grid?  You aren't protected by the US army?  You won't receive social security?

/devilsadvocate

Yes, I do... that's why I have a regular job that tax me %28 of my income so, the money that I invest in buying mining equipment or btc has already been taxed...

Now this line of reasoning might actually have some legs.   I find myself very sympathetic to it.

[SgtSpike]

How do I avoid uncle sam to stick its hand in my cookie jar and takes the tax share?
What if I don't report it?

Face to face trades.

Of course, not paying your share into a system that you benefit from makes you a freeloader (or at the very least a leech).

I'll gladly pay the transaction fees/withdrawal fees of trading my bitcoins into USD and then transfering USD to my bank account.
I'm paying  my share to the system I benefitted from, BTC that is. I didn't benefit from USD.

So you don't use roads?  You don't take advantage of the electrical grid?  You aren't protected by the US army?  You won't receive social security?

/devilsadvocate

Yes, I do... that's why I have a regular job that tax me %28 of my income so, the money that I invest in buying mining equipment or btc has already been taxed...

Now this line of reasoning might actually have some legs.   I find myself very sympathetic to it.

But the gain of that investment wouldn't have been taxed yet.  And you can (rightfully) deduct the expense of your investment to avoid being taxed twice on it.

[Dalkore]

How do I avoid uncle sam to stick its hand in my cookie jar and takes the tax share?
What if I don't report it?

Face to face trades.

Of course, not paying your share into a system that you benefit from makes you a freeloader (or at the very least a leech).

I'll gladly pay the transaction fees/withdrawal fees of trading my bitcoins into USD and then transfering USD to my bank account.
I'm paying  my share to the system I benefitted from, BTC that is. I didn't benefit from USD.

So you don't use roads?  You don't take advantage of the electrical grid?  You aren't protected by the US army?  You won't receive social security?

/devilsadvocate

Yes, I do... that's why I have a regular job that tax me %28 of my income so, the money that I invest in buying mining equipment or btc has already been taxed...

Now this line of reasoning might actually have some legs.   I find myself very sympathetic to it.

But the gain of that investment wouldn't have been taxed yet.  And you can (rightfully) deduct the expense of your investment to avoid being taxed twice on it.

Would this be an investment or a method of creating a Bitcoin dividend? 

Does Bitcoin has official designation under the tax code?  I saw the guidance of the U.S. Treasury calling it a "virtual currency" but does that mean the IRS is treating it as that.  Until we have official designation under the tax code, I do not believe he should need to declare it at this time.   

[SgtSpike]

How do I avoid uncle sam to stick its hand in my cookie jar and takes the tax share?
What if I don't report it?

Face to face trades.

Of course, not paying your share into a system that you benefit from makes you a freeloader (or at the very least a leech).

I'll gladly pay the transaction fees/withdrawal fees of trading my bitcoins into USD and then transfering USD to my bank account.
I'm paying  my share to the system I benefitted from, BTC that is. I didn't benefit from USD.

So you don't use roads?  You don't take advantage of the electrical grid?  You aren't protected by the US army?  You won't receive social security?

/devilsadvocate

Yes, I do... that's why I have a regular job that tax me %28 of my income so, the money that I invest in buying mining equipment or btc has already been taxed...

Now this line of reasoning might actually have some legs.   I find myself very sympathetic to it.

But the gain of that investment wouldn't have been taxed yet.  And you can (rightfully) deduct the expense of your investment to avoid being taxed twice on it.

Would this be an investment or a method of creating a Bitcoin dividend? 

Does Bitcoin has official designation under the tax code?  I saw the guidance of the U.S. Treasury calling it a "virtual currency" but does that mean the IRS is treating it as that.  Until we have official designation under the tax code, I do not believe he should need to declare it at this time.   

It would be taxed as income at the time it is generated.  Any increases/decreases in value after generation, if held for less than two years before sold, would be treated as ordinary income, if held for more than two years before sold, would be treated as capital gains/loss.

That is my understanding of the application of existing tax laws as of 4 years ago when I took a tax accounting class.  I treat it as capital gains exactly because the IRS hasn't made any official rulings on it - they haven't declared it to be a valid foreign currency, so I don't see treating it as gains on foreign exchange as the correct route to go yet.  In my opinion, it cannot be declared as anything other than an asset (and gains/losses on that asset would be treated as such) until further ruling from the IRS.