2013-05-02 Forbes: IRS Takes a Bite Out of Bitcoin

[batcoin]

http://www.forbes.com/sites/robertwood/2013/05/02/irs-takes-a-bite-out-of-bitcoin/

[1715186171]

1715186171

[1715186171]

1715186171

[cbeast]

Looking at this guys blogs tells me he likes to necro stories.

[beckspace]

He's right, but the title could be:

IRS Takes a Bite Out of Everything

[NamelessOne]

So basically people have to follow laws? Oh wow, so horrible. My goal with bitcoin isn't to be a rebel and avoid taxes, it is to make money and hopefully help support a new form of payment system. If I have to pay capital gains tax on my gains I'm just fine with that, thats like... normal. This is a nonstory in my eyes.

[sunnankar]

So basically people have to follow laws? Oh wow, so horrible.

Mr. Wood should also point out that (1) receiving Bitcoin as a donation or gift gives rise to neither tax liability nor reporting requirements [exception may exist for receiving greater than $100,000 from a non-US person or about $13,000 from a non-US entity] and (2) using Bitcoin as a medium to pay ordinary and necessary business expenses entitles one to a deduction that will reduce tax liability.

After all, when the IRS gives you lemons a creative CPA or tax attorney should be able to help you make lemonade.

There are other interesting tax issues involving Bitcoin which is a reason to read A Lawyer’s Take On Bitcoin and Taxes.

[proudhon]

So basically people have to follow laws? Oh wow, so horrible. My goal with bitcoin isn't to be a rebel and avoid taxes, it is to make money and hopefully help support a new form of payment system. If I have to pay capital gains tax on my gains I'm just fine with that, thats like... normal. This is a nonstory in my eyes.

This.  I've already spoken to my accountant about my obligations, and I'm happy to settle up with my government.  In any event, if you don't even want to pay capital gains, then stay in bitcoin.

[Zomdifros]

So basically people have to follow laws? Oh wow, so horrible. My goal with bitcoin isn't to be a rebel and avoid taxes, it is to make money and hopefully help support a new form of payment system. If I have to pay capital gains tax on my gains I'm just fine with that, thats like... normal. This is a nonstory in my eyes.

This.  I've already spoken to my accountant about my obligations, and I'm happy to settle up with my government.  In any event, if you don't even want to pay capital gains, then stay in bitcoin.

I'm a libertarian and I believe taxation equals theft. Yet I'm definitely going to pay taxes on Bitcoin, simply because it wouldn't be in my long-term interest to risk losing everything by saving a bit on my tax expenses.

[kiba]

No shit, sherlock!

[marcus_of_augustus]

The fiction that "IRS operates voluntary compliance" has been made a bald-faced lie with draconian ans criminal penalties for errors and omissions. It now clearly operates by projecting fear and intimidation through threat of incarceration for non-compliance or even simple errors, unless you are a big corporation or politically connected. Even so, we welcome the revenue departments to the crypto-currency rabbit-hole ... there are warrens and tunnels running off into infinity for those agents of an inquiring and mathematical bent good with numbers ... watch out for the terriers.