Caveat: I'm not an accountant, and changed my major before there was any chance anyone would confuse me for one.
1. How will this work for taxes? http://www.irs.gov/businesses/small/article/0,,id=130524,00.htmlYou must immediately translate into dollars all items of income, expense, etc. (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income taxl
I keep hearing I need to declare USD value when the conversion happens. What kind of evidence would be sufficient in an audit? Do I just write the date down, GoxLast (which fluctuates $20/hour anymore), and tell them to look up historical price charts? What if Bitcoins are only worth $20 on miou302ponz.info's exchange, but $190 on MtGox? Which do I use? Would the IRS even trust data from Gox?
How do I prove the transaction? "Oh, txID is 19512a921ec4b501faf5b2f56a1cf41129cef65cf46d3fa79b1b2034797793f2, Mr. Has-Me-By-The-Balls -- you can look it up on blockchain.info if you don't believe me and don't keep a copy of the blockchain around."