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Author Topic: [US] Taxes and gold coins  (Read 2047 times)
jgarzik
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July 21, 2010, 08:49:37 PM
 #1

Something eventually relevant to bitcoin and Pecunix?

http://abcnews.go.com/Business/gold-coin-dealers-decry-tax-law/story?id=11211611

Starting Jan. 1, 2012, Form 1099s will become a means of reporting to the Internal Revenue Service the purchases of all goods and services by small businesses and self-employed people that exceed $600 during a calendar year. Precious metals such as coins and bullion fall into this category and coin dealers have been among those most rankled by the change.

This provision, intended to mine what the IRS deems a vast reservoir of uncollected income tax, was included in the health care legislation ostensibly as a way to pay for it. The tax code tweak is expected to raise $17 billion over the next 10 years, according to the Joint Committee on Taxation.

Jeff Garzik, bitcoin core dev team and BitPay engineer; opinions are my own, not my employer.
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InterArmaEnimSil
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July 21, 2010, 09:27:43 PM
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I don't understand the hideous threat in this new requirement.  If a business purchases $600 or more in product from a supplier, it must fill out a form to verify that the supplier is reporting these sales (which they should be reporting anyway) to be taxed.

I'm very much in disapproval of the current American administration and its policies, and very much a free-market libertarian.  However, this does not impose any new tax or tax requirement - they're just double-checking to make sure that all goods *already* taxed are reported.  Said taxes might need to be eliminated, but at least this only imposes a reporting requirement, not a new tax.  Pain in the rear?  Yes.  Huge change of policy?  No.

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kiba
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July 21, 2010, 09:34:26 PM
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I don't understand the hideous threat in this new requirement.  If a business purchases $600 or more in product from a supplier, it must fill out a form to verify that the supplier is reporting these sales (which they should be reporting anyway) to be taxed.

I'm very much in disapproval of the current American administration and its policies, and very much a free-market libertarian.  However, this does not impose any new tax or tax requirement - they're just double-checking to make sure that all goods *already* taxed are reported.  Said taxes might need to be eliminated, but at least this only imposes a reporting requirement, not a new tax.  Pain in the rear?  Yes.  Huge change of policy?  No.

Well, they're not going to have much records of many bitcoin users' trail.

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July 21, 2010, 09:39:29 PM
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Well, they're not going to have much records of many bitcoin users' trail.

I really question how many btc users are going to be selling more than $600 of goods in btc....  Besides, this new requirement doesn't trouble gold dealers because of goods transferred *in gold* (though perhaps it should).  The problem is that any Joe or Shirley who sells gold probably sells more than $600 (About .52 troy oz at current rates).  Thus, if they do business with ten people a day, thats 3,650 forms to fill out.  (Neglecting deductions for weekends and holidays).  Yay, bureaucratic paperwork!

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RHorning
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July 22, 2010, 02:26:28 AM
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Well, they're not going to have much records of many bitcoin users' trail.

That could be a problem.  It could also be something to make the use of Bitcoins in America illegal.  Certainly the U.S. government is very interested in "paper trails" and keeping track of where money came from and where it is going, where even cash transactions have to be reported on some level.  This move simply adds that issue all that more.

It also goes to show what happens when Congress passes legislation that nobody bothers to read before they vote on it.  Depending on dividing it up to all of the "staff" to pour through and see if there is something you don't like should mean that the legislation was bad in the first place.

Yes, I do believe that each congressman should read the whole legislation they vote upon, at least for those they vote "yes" upon.  Voting "no" regarding a stack that is incomprehensible does more good for everybody involved.

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July 22, 2010, 11:59:53 AM
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That could be a problem.  It could also be something to make the use of Bitcoins in America illegal.  Certainly the U.S. government is very interested in "paper trails" and keeping track of where money came from and where it is going, where even cash transactions have to be reported on some level.  This move simply adds that issue all that more.

The government just don't like competing currencies or anything that threaten their monopolies, period. If you set up a country 50 miles away from shoreline of America, they will find a reason to bomb/invade/murder/etc the island to oblivion.

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July 23, 2010, 02:28:25 AM
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Well, they're not going to have much records of many bitcoin users' trail.


Yes, I do believe that each congressman should read the whole legislation they vote upon, at least for those they vote "yes" upon.  Voting "no" regarding a stack that is incomprehensible does more good for everybody involved.

It should be obvious that this is not the case. Voting "yes" almost always gives the government more power, and who is voting "yes"? Members of the government. Who are each people, who look after their own interests as they should. We should follow their lead and look out for our interests.

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April 19, 2011, 04:56:07 AM
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I hope they don't pass this.  Think of the implications for small business in general.  It will make it a PIA for hiring anyone to do any work and especially for those buying and/or selling gold coins.

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April 19, 2011, 07:15:56 AM
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President Obama signed the repeal yesterday.

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April 19, 2011, 11:22:06 PM
 #10

The problem with the law as it was before Obama thankfully repealed it was if I bought (as a small biz) a $700 computer from newegg I would need neweggs taxpayer ID and file a 1099 for them.

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April 20, 2011, 02:34:50 AM
 #11

I think you should be barred from voting if you work for the government in any way.

Make them eat some of their own medicine by having to register their id as a government operative is a good start.

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