Remember, if you sell you have to pay Capital gains taxes. Or you can just spend

[Elwar]

It appears to have gone under the radar but, http://www.bitspend.net allows you to purchase anything on the Internet using Bitcoins.

So...if you ever plan on buying anything on the Internet in the future, you may as well keep your BTC instead of losing a chunk of it in taxes.

[Aseras]

It appears to have gone under the radar but, http://www.bitspend.net allows you to purchase anything on the Internet using Bitcoins.

So...if you ever plan on buying anything on the Internet in the future, you may as well keep your BTC instead of losing a chunk of it in taxes.

anyone tried to do the order US dollar coins from treasury thing with them?

http://catalog.usmint.gov/webapp/wcs/stores/servlet/ProdschedView?storeId=10001&catalogId=10001

[Elwar]

It appears to have gone under the radar but, http://www.bitspend.net allows you to purchase anything on the Internet using Bitcoins.

So...if you ever plan on buying anything on the Internet in the future, you may as well keep your BTC instead of losing a chunk of it in taxes.

anyone tried to do the order US dollar coins from treasury thing with them?

http://catalog.usmint.gov/webapp/wcs/stores/servlet/ProdschedView?storeId=10001&catalogId=10001

Interesting, I do not see why they would not do it. All they do is take your order and pay cash for whatever you purchase.

[Luno]

Thats the stupidest tax advice I ever heard anywhere: Spending Bitcoin on goods is as taxable as spending it on $$. You have to pay Capital gains tax on the price of the good you buy!!!!!!!!!!!!

Nice try, bumping you store buy turning you potential customers into believing that they can avoid having to pay tax!!

The only tax free Bitcoins you can spend are the ones bought with taxed $$, the ones coming out of your own pocket!!

[Rygon]

It appears to have gone under the radar but, http://www.bitspend.net allows you to purchase anything on the Internet using Bitcoins.

So...if you ever plan on buying anything on the Internet in the future, you may as well keep your BTC instead of losing a chunk of it in taxes.

False. At least in the US, bartering is still considered a taxable transaction (for either person) if they had a netgain in value, as determined in USD fiat. And the prevailing legal opinion is that trading bitcoins for goods is bartering. Yes, it would have to be self-reported, and I doubt that most people do that.

[Elwar]

Thats the stupidest tax advice I ever heard anywhere: Spending Bitcoin on goods is as taxable as spending it on $$. You have to pay Capital gains tax on the price of the good you buy!!!!!!!!!!!!

Nice try, bumping you store buy turning you potential customers into believing that they can avoid having to pay tax!!

The only tax free Bitcoins you can spend are the ones bought with taxed $$, the ones coming out of your own pocket!!

Not my store, I just like the concept.

If you go to Europe and exchange your dollars for Euros and the price of Euros goes up, you do not have to pay Capital gains tax on the products you buy with your Euro.

The only Bitcoins I own are the ones bought with taxed $$.

[Wuji]

Let's pretend someone has a few Mt GOX accounts and bought BTC while it was low in fake names with cash (no way BTC is not anonymous this is impossible LOL).  Let's say this person sold off and made a huge profit.  That person can keep that money in those accounts without actually cashing out but have that money in USD.  Then once price drops and stabilizes they can buy back more BTC.  They can slowly send this money to accounts in real names and cash out smaller amounts using friends and such even in other countries.  Capital gains schmaptiable gains.

[Rygon]

I think this site is good, hope to try it out soon. But people should be clear on what the law (US) is related to buying things with bitcoin.

Here:
http://www.irs.gov/taxtopics/tc420.html
and here:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Tax-Responsibilities-of-Bartering-Participants

The IRS does not consider Bitcoin to be money (or silver/gold for that matter), so any exchange is a barter transaction. The Eruo is money (lol!), so the taxman says that is a regular transaction.

[Luno]

No, capital gains while on vacation are not taxed, as it is luck or unluck, not speculating in exchange rate. Tax man gives a little leverage there.

If you on a daily basis cross a border to exchange currencies, that would be considered running a business and speculating in exchange rates.

Don't forget either that capital losses are deductible and so are bank fees when cashing out or moving money around real bank accounts!

[dg2010]

Thats the stupidest tax advice I ever heard anywhere: Spending Bitcoin on goods is as taxable as spending it on $$. You have to pay Capital gains tax on the price of the good you buy!!!!!!!!!!!!

Capital gains tax is a tax on profit. It is not a tax on consumption.

Consumption taxes would be VAT or sales tax.

So you do not pay CGT on your purchases, only on your profits.

[Elwar]

No, capital gains while on vacation are not taxed, as it is luck or unluck, not speculating in exchange rate. Tax man gives a little leverage there.

If you on a daily basis cross a border to exchange currencies, that would be considered running a business and speculating in exchange rates.

Right, it is only if you are intending to make money on the trade of currencies.

For me, I am simply moving out of the dollar. The FinCEN even states that everything kicks in when you come back into the arms of the dollar.

Federal Reserve Notes belong in the Federal Reserve. They can keep them.

[Luno]

Thats the stupidest tax advice I ever heard anywhere: Spending Bitcoin on goods is as taxable as spending it on $$. You have to pay Capital gains tax on the price of the good you buy!!!!!!!!!!!!

Capital gains tax is a tax on profit. It is not a tax on consumption.

Consumption taxes would be VAT or sales tax.

So you do not pay CGT on your purchases, only on your profits.

You are so wrong that not how it works, The consumption is possible because you have had an income. Eating the evidence does not make it tax free. Tax on consumption comes after income tax! Have you ever filed a tax return for a business???

[Luno]

About having BTC on Gox, FinCen have spoken there: They differentiate on mining and selling like a gold miner once in a while when prices are high and doing business in Bitcoin!! Either way, having Bitcoin on an exchange, as opposed to having them in a private wallet suggest that they are capital or an easy spendable asset and you better declare them than be sorry later. If you only accept gasoline as payment in your business having your barn full of pallet tanks of gasoline will also be something you have to declare to the tax man. (and possible also the fire department).

[GeoRW]

Capital gains are not taxable in my country  I sold a lot of coins to tens of different people around the Europe on peer to per basis. There's no way how they could impose tax on me. What if bitcoin depreciates? Will the goverment pay for the losses of all those people who'll be burned? 

[Luno]

Capital gains are not taxable in my country  I sold a lot of coins to tens of different people around the Europe on peer to per basis. There's no way how they could impose tax on me. What if bitcoin depreciates? Will the goverment pay for the losses of all those people who'll be burned? 

I need to know what country! I thought that Thailand was without tax on capital holdings, and you don't have capital gains tax either?? Wow.

Are you in the Vatican?

[Luno]

If you payed more for your Bitcoins than you sell them for, the loss is deductible!

But as you live the ultimate capital gains tax free heaven, I don't think so

[GeoRW]

Capital gains are not taxable in my country  I sold a lot of coins to tens of different people around the Europe on peer to per basis. There's no way how they could impose tax on me. What if bitcoin depreciates? Will the goverment pay for the losses of all those people who'll be burned? 

I need to know what country! I thought that Thailand was without tax on capital holdings, and you don't have capital gains tax either?? Wow.

Are you in the Vatican?

I live in Slovakia. I checked it now and there IS capital gains tax actually, but only for investments that you hold shorter than 6 months (I bought all bitcoins some time ago at a price around 3 EUR - 4 EUR, so it doesn't apply here). Dividends are not taxable here either. As I'm not a miner who creates and sells bitcoins, I don't think it can be taxed as a profit from commodity sales either.

[Luno]

Thanks for the tip. It's usually so or most of your currency would end up in the hands of a few.

Are the Slovakians planing to join the EU?

[Xendrios]

no capital gains taxes in Belgium :-) poor Americans...