IRS is going to tax Bitcoin

[DarkLamp]

If I make all my coin clients operate through tor could the IRS still catch me? I don't cash it out to USD, I make online purchases either in BTC or using gift cards from gyft.com...
I'm worried that the money grubbing IRS is going to come after me for my bitshekels.

[bythesea]

Hi,

Well, Bitcoin has gained a bit more status, the IRS considers it like trading in property. 

CNN:  "The Internal Revenue Service has issued a formal notice saying it can tax Bitcoin transactions, calling it a property -- not a currency."
<http://money.cnn.com/2014/03/25/technology/innovation/irs-bitcoin/index.html?iid=HP_LN>

IRS Notice 2014-21:  <http://i.cdn.turner.com/money/2014/images/03/25/IRS_Notice_2014_21.pdf?iid=EL>

cya,

Well that could also lead to taxing other currency we have, ups properties. Like credits in games like EVO, SWTOR, gold in WoW and such, considering it can be sold, bought, traded for something else...

[solarfan]

Hi,

Well, Bitcoin has gained a bit more status, the IRS considers it like trading in property. 

CNN:  "The Internal Revenue Service has issued a formal notice saying it can tax Bitcoin transactions, calling it a property -- not a currency."
<http://money.cnn.com/2014/03/25/technology/innovation/irs-bitcoin/index.html?iid=HP_LN>

IRS Notice 2014-21:  <http://i.cdn.turner.com/money/2014/images/03/25/IRS_Notice_2014_21.pdf?iid=EL>

cya,

Well that could also lead to taxing other currency we have, ups properties. Like credits in games like EVO, SWTOR, gold in WoW and such, considering it can be sold, bought, traded for something else...

The only things I know have escaped taxation is frequent flyer points, and solar power; don't know why.

[wbaw]

- Namecoin with its decentralized domain names (.bit)

- http://twister.net.co/ fully decentralized P2P microblogging platform

- BitTorrent is working on decentralized web browser - BitTorrent Sync/SyncNet can view it peer-to-peer without the need to access a traditional server-based website.
  http://torrentfreak.com/bittorrent-sync-used-to-create-decentralized-web-browser-140204/
[/b]

And probably few more I didn't remember right now or don't even know about.

I wish we had a fully developed, mass adoption ready, decentralized e-mail replacement. Bitmessage is a nice idea, but I don't think it will scale gracefully and nobody seems to care about I2P Bote.

E-mail is decentralised, always has been. Use PGP to make it private too.

[TheFiendishOne]

So they should start taxing linden dollar as well and virtual property taxes within second life.

Isn't it possible to have a different or new political party?  Aren't there more than just the two "dominant" ones?  Aren't they dominant mostly due to money?

Why not create a political party, and for the lack of a good name, you call it the peoples party.

With the power of bitcoin it should be easy to fund this.  Don't just cater to bitcoin, cater to the people. Help fund or solve real issues within the USA.  I think the $$ is there, but I'm not al that into politics.  I know id vote reps of said party.  Infact, I would actually and finally register.  Can we start a group on this?  If that were so can I be a part of it?  I don't want any gains just the opinion of an average hard working citizen.

Perhaps this is impossible, but I wouldn't really know.

I do know (or feel) that there are a lot of countries who are seemingly keeping "silent" over a lot of matters due to the u.s. govt strong arm.  There are a lot of reasons for this (none are really just IMO) but this party could gain support from the countries who are keeping quiet without complaints but are actually displeased with said notion.


Any constructive thoughts? Is this type of action suicide? Like I said I'm not very political just an average joe so i apologize if this is dumb

[hurricandave]

They don't tax gold miners on every flake of gold they find at the moment it was found. They are going to have one HELL OF A TIME calculating in audit the exact value every single satoshi mined at the moment it was mined. Now placing a taxable value on the first transaction in which a miner transfers coin to his own wallet off the mining pool or exchanges it thru something like Coinbase is doable and utilizes a finite time that an actual verifiable $ value can be placed on the BTC.

[Searing]

Hi,

Well, Bitcoin has gained a bit more status, the IRS considers it like trading in property.  

CNN:  "The Internal Revenue Service has issued a formal notice saying it can tax Bitcoin transactions, calling it a property -- not a currency."
<http://money.cnn.com/2014/03/25/technology/innovation/irs-bitcoin/index.html?iid=HP_LN>

IRS Notice 2014-21:  <http://i.cdn.turner.com/money/2014/images/03/25/IRS_Notice_2014_21.pdf?iid=EL>

cya,

No one except people who are trying to run publicly-seen legitimate businesses that accept btc will be affected by this. Obv, no one else will bother reporting their day-to-day bitcoin trades.

They're hurting the one group we want to grow. If anything, this will just push trading btc for goods back down to the black market.

yep ..too cumbersome i have some hope this will get 'fixed' but if you wanted finance and gov't to kill bitcoin by muddying the waters i can't
think of a better way to do this then what the IRS announced the other day

me just sitting on BTC till prob end of summer with hearings etc assuming logic prevails it will take at least that long to fix this imho even if the fix
is just a 20% capital gains tax on the value of the alt coin the day you sell it is the solution....crap end of august is more likely and that is IF they
come to their senses on BTC..now if they just want to kill bitcoin .they made a pretty good start with the USA IRS announcement imho

Searing

[Velkro]

Depend on the country but im not worried. Until i will sell my BTC im safe from taxes and this will not happen soon.

[Searing]

Depend on the country but im not worried. Until i will sell my BTC im safe from taxes and this will not happen soon.

if you mine in the USA now according to the IRS what you mine in a day is 'gross income" like a job 25% lets say and when you sell the
coin it is 20% capital gains tax if you keep it at least 1 year if under a year it is like 43 percent..it applies to ALL THE BITCOIN YOU'VE
EVER MADE ....so a coin in 2009 at 2c if you bought a tv for 600 bucks now you would owe capital gains on 599.98 usd

hard to trade as a currency if 1 BTC is different then another BTC for miners

unenforceable ..but if you we're a merchant would you take BTC in the USA with this cluste*fu*ck of a setup
likely it will get changed to something like 20% capital gains tax if you sell the coin

but why would anyone mine in the USA now?

so if fixed it will take into summer imho to get this tweaked more reasonably so it can be used as a currency imho

also this just pop'd up looks like china really is gonna ban BTC exchanges etc from Banks in China

http://www.theregister.co.uk/2014/03/28/bitcoin_china_pboc_ban/

this don't help much ether projected difficulty 8 some days out

https://bitcoinwisdom.com/bitcoin/difficulty

this is not good

Searing

[JazzCouncil]

Here's one person was trying to out-bureaucratize the IRS. Not the best idea really

http://www.reddit.com/r/Bitcoin/comments/21j893/irs_protest/

[bitcoinboy163]

It's really good news,It means it's legal now