White House Petition to AMEND IRS NOTICE 2014-2 Taxing virtual currency/Bitcoin

[tins]

A major issue about signing this petition is that a whitehouse.gov account is required to do so.
How many bitcoin users are willing to create on to sign it? I'd venture to guess not many due to the fact that it would be an easy way for the U.S. government to tract people involved with bitcoin.

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[amspir]

So if I owned 100,000 gold coins in a video game, must I pay capital gains when the game company raises the price?

It would be taxed at higher regular income rates, if there were a market for your 100,000 gold coins -- that is, if you can sell them.

*or spend them.

Still not quite the same thing.   Imagine that your prepaid phone minutes increased in price for your favorite burner phone.   Sure, you might make a profit by selling unredeemed phone cards because the price was raised by the phone company, and technically you would be liable to pay tax on that profit.

The thing that is a burden for me is I buy mining equipment with BTC that I mine. So even though I'm recycling BTC revenues back into my business I am expected to record the pool payout as income and then the equipment purchase as a realized gain or loss event, but I'm never actually exchanging it for cash. I guess if an ASIC chip had other purposes I'd feel a little better about the system, but it does have the feeling like they are trying to discourage the holding and spending of the mined coins by adding complexity/busy-work to it. From a bookkeeping perspective it's a pain in the ass, and there will probably be significant added costs passing along the spreadsheets to a CPA for eval and filing.

With the capital gains ruling, essentially, you are conducting two activities, mining and speculating.   You are a disadvantage if you take losses from speculating -- and the error was assuming that your speculation losses could be written off as business expenses.   Hopefully the market will stabilize and bitcoin will start behaving with slow and steady growth so this won't be so much of an issue.  You may also be able to use your speculation losses to offset your future gains, ask your CPA about that.

[Siegfried]

A major issue about signing this petition is that a whitehouse.gov account is required to do so.
How many bitcoin users are willing to create on to sign it? I'd venture to guess not many due to the fact that it would be an easy way for the U.S. government to tract people involved with bitcoin.

Exactly.

[J_Dubbs]

A major issue about signing this petition is that a whitehouse.gov account is required to do so.
How many bitcoin users are willing to create on to sign it? I'd venture to guess not many due to the fact that it would be an easy way for the U.S. government to tract people involved with bitcoin.

When I worked in the financial field in my mid 20's the manager at the wirehouse setup "4pm yoga" on Wednesdays. I was too busy and usually had the problematic brokers assigned to my desk. The well-pedigreed sales assistants worked for the fat cats, never had a lot of work to do and got paid a lot better for doing less work. I always thought the yoga thing would have been a great way to figure out who didn't have enough work on their desk, but in the end they really were just doing yoga despite my suspicion of the whole thing being a clever trap...

[bitjuicy]

So far the petition to the White House about the IRS ruling against Bitcoin hasn't gotten much traction. If you believe in the value of digital currencies like Bitcoin, you need to sign this petition on the White House website. If we achieve 100,000 signatures, the President will have to respond.

To vote, go to https://petitions.whitehouse.gov/petition/amend-irs-notice-2014-2taxing-virtual-currencybitcoin-property-stifles-new-technologycreates/z7WtKZGY

[Beliathon]

You will fall into " receiving funds from outside of U.S." and its not pretty when I.R.S ask you.

We have some rights, the fifth amendment is one of them.

The legal burden of proving ownership would be on the I.R.S. I would not be legally obligated to say anything.

The fact: they will not be able to enforce these tax rules.

https://www.youtube.com/watch?v=b3_lVSrPB6w

Smart person detected.

[7Priest7]

We have some rights, the fifth amendment is one of them.

The legal burden of proving ownership would be on the I.R.S. I would not be legally obligated to say anything.

The fact: they will not be able to enforce these tax rules.

https://www.youtube.com/watch?v=b3_lVSrPB6w

Smart person detected.

Unless you are foolish enough to give your name(and SSN), The IRS will not know of any bitcoin gains.
Do you know where the fifth amendment comes from?
Inalienable human rights, The right to silence is among those rights regardless of context.
Declare your bitcoins, You infringe upon your own right to silence.
Make no mention of your name/(social security number) and you protect your right to own bitcoins anonymously.

Bitcoin is all about anonymity, proof of ownership will be a key factor for the I.R.S to engage in any audit related to bitcoin.
How are they gonna say that "For federal tax purposes, virtual currency is treated as property."
then say that their taxable.

Not once in my life have I traded a item(property) for a item(property) and paid tax on it, the idea is just silly.

Lastly, You're ignored, Your sarcasm is misplaced.
I do hope you pay taxes for your bitcoins, I won't be.

[Wary]

It's only 685 at the moment.
Sign up guys/gals! I did, despite of not being American.
There are 303,094 of us on this forum. We need just 1/3 of it to cross the threshold.