Enjoy getting raided by the IRS for not reporting income and capital gains.

[klear]

This is something my 'friend' said to me when discussing bitcoins, how do i(you) respond?

[1714950029]

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[1714950029]

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[farlack]

I think right now capital gains is only 20%
Tell them..


Who cares? I'll pay it.

Every $100 profit, you pay $20..

Who cares? Pay it.

Write off your electric, internet, home office space (rent), computers, websites etc.

[Elwar]

I believe I can speak for all Bitcoin users in saying that we will abide by all government rules and regulations and will be paying all of our highly justifiable taxes to the kings of our era who so mercilessly allow us to bath in the glory of their great countries.

Any IRS hero who happens to be reading this need not worry one bit about our loyalty to dutifully pleasure them with our money in our desire to reward their greatness.

I believe that should clear it all up.

[Lethn]

If I have no choice but to pay taxes I'll gladly pay Bitcoins to a government department of my choosing that I actually believe in, so no military funding for youuuu!

[gnar1ta$]

Large miners should be treating their operations as a business and taking the appropriate deductions - there are many.  Otherwise look into treating it as a hobby.  If you are just speculating, you are probably paying the full capital gains, but only on realized $ gains.  You aren't taxed if your google stock skyrockets until you cash it out, BTC should be no different.

[Severian]

I believe I can speak for all Bitcoin users in saying that we will abide by all government rules and regulations and will be paying all of our highly justifiable taxes to the kings of our era who so mercilessly allow us to bath in the glory of their great countries.

Seconded. We are the most fortunate people in history to live with such a sensible and necessary government and its tax code and I hope every Bitcoin user gives them every cent they deserve.

[Minor Miner]

I think right now capital gains is only 20%
Tell them..


Who cares? I'll pay it.

Every $100 profit, you pay $20..

Who cares? Pay it.

Write off your electric, internet, home office space (rent), computers, websites etc.

that is long term cap gains (position held over 12 months).   less than that is full income tax.   And it is not 20%.   It is 20% plus 3.8% for the obamacare surtax.   But if you make less than a certain amount it will be LOWER.    

[Mike Christ]

What is this IRS you speak of? Only place around here with a name like that sells tyres and spark plugs.

It's basically a government-sanctioned mafia.

[Minor Miner]

I believe I can speak for all Bitcoin users in saying that we will abide by all government rules and regulations and will be paying all of our highly justifiable taxes to the kings of our era who so mercilessly allow us to bath in the glory of their great countries.

Seconded. We are the most fortunate people in history to live with such a sensible and necessary government and its tax code and I hope every Bitcoin user gives them every cent they deserve.

Or give them even more than they deserve.

[Matthew N. Wright]

Capital gains only apply when you *sell* bitcoins. Tell your friend that you're planning on spending them, and that there isn't an IRS dedicated to Bitcoins yet because we pay a network tax instead and don't have a seastead to start our libertarian government up proper.

[fractal5]

This is something my 'friend' said to me when discussing bitcoins, how do i(you) respond?

What made you decide to them you wouldn't be reporting your capital gains?

[klear]

This is something my 'friend' said to me when discussing bitcoins, how do i(you) respond?

What made you decide to them you wouldn't be reporting your capital gains?

I didn't bring them up or say i would or wouldn't

[muyuu]

I believe I can speak for all Bitcoin users in saying that we will abide by all government rules and regulations and will be paying all of our highly justifiable taxes to the kings of our era who so mercilessly allow us to bath in the glory of their great countries.

Any IRS hero who happens to be reading this need not worry one bit about our loyalty to dutifully pleasure them with our money in our desire to reward their greatness.

I believe that should clear it all up.

I'm stealing this 

[Minor Miner]

Tell this to your friend:

1) I put Fiat on MTGox
2) I buy bitcoin
3) I transfer bitcoin to my wallet
4) I sell bitcoin on craigslist for current price + 10%
5) I keep cash without the IRS ever knowing what's up!

footnote: clearly you can't go and buy a 2.3 million dollar house after you do that a few hundred times, but if you're wise you can always blend the money into your regular income (if you have any), if all you have it the bitcoin gig and you made a shit load of money, what the hell are you doing in the US still?

I have been doing that but with bitcoin getting so high now, I am worried about mom finding the cash stash and narcing me out.

[Matthew N. Wright]

Tell this to your friend:

1) I put Fiat on MTGox
2) I buy bitcoin
3) I transfer bitcoin to my wallet
4) I sell bitcoin on craigslist for current price + 10%
5) I keep cash without the IRS ever knowing what's up!

footnote: clearly you can't go and buy a 2.3 million dollar house after you do that a few hundred times, but if you're wise you can always blend the money into your regular income (if you have any), if all you have it the bitcoin gig and you made a shit load of money, what the hell are you doing in the US still?

I have been doing that but with bitcoin getting so high now, I am worried about mom finding the cash stash and narcing me out.

Why would anyone admit to tax evasion to their coworkers or friends who are actively accusing bitcoiners of tax evasion?

[farlack]

I think right now capital gains is only 20%
Tell them..


Who cares? I'll pay it.

Every $100 profit, you pay $20..

Who cares? Pay it.

Write off your electric, internet, home office space (rent), computers, websites etc.

that is long term cap gains (position held over 12 months).   less than that is full income tax.   And it is not 20%.   It is 20% plus 3.8% for the obamacare surtax.   But if you make less than a certain amount it will be LOWER.    

Really? Wow, even better, you don't start paying taxes for a long shot, I think I didn't start paying taxes for 10.7k profit.

[muyuu]

Better yet. Don't cash out.

Use your coins in the BTC-economy. Win-win.

[unk]

Capital gains only apply when you *sell* bitcoins. Tell your friend that you're planning on spending them, and that there isn't an IRS dedicated to Bitcoins yet because we pay a network tax instead and don't have a seastead to start our libertarian government up proper.

you have misunderstood how realization of capital gains works in the united states and similar tax systems. while it is true that if you buy or mine bitcoins you probably don't owe tax until you 'sell' them in most cases, 'sell' in this context basically means 'dispose of'.  if you spend $1 to mine 1 coin and then use it to buy something worth $140, you have realized $139 in (capital) income at the time of your purchase.

the same would be true of stocks: if you bought GOOG at $400 in the past and trade it to someone for something worth $800 today, you have 'sold' it for $800 for tax purposes.

[Razick]

I am anti-tax, and I believe that we should work hard to get them lowered and reformed to be more fair, but you should pay them nonetheless. Bitcoin is just like cash.

[hawkeye]

Bitcoin is just like cash.

Not to governments as far as I know.  None of them have said they recognise bitcoin as cash, to my knowledge.