Although it's obvious quite a few people will be ignoring this and continuing on paying for things in btc and not giving it a second thought, this does pose a problem for quite a few people who plan to do it the legal way. What needs to happen is a wallet that fully integrates the IRS guidelines and automates whatever requirement they have so that you can simple include that part of your taxes with the full report. I expect there will be a sizable market for a wallet like that and whoever can implement it effectively will get the first shot at the market of people who plan to follow the IRS's regulations.
Well from what i understand congress (hearings the summer of 2013) treasury SEC were/are somewhat 'miffed' with the land analogy that the IRS used for guidelines....but being an election year likely nothing will get done till after Nov or prob spring of 2015..up to that point ..it was just pay taxes on coin you use on capital gains more or less ..and being USA it is the tax payers responsibility to be honest on such..ie like stocks and bonds..your risk to buy....sell capital gains (or tax credit for capital loss) ..don't sell at all ...don't have to do any tax.
with congress and the above wanting btc to be treated like a modified currency..well the IRS guidelines thru that out the window imho
and imho came out of left field as far as the congress hearings were concerned...if we did not have such a 'dysfunctional congress" these days it likely would have been addressed already ..alas that an't gonna happen soon in my view.
also seems to me some back room clout by ..dare i say....interests who wanted to 'stifle' bitcoin? I mean 20 days before USA persons taxes are due you are to report ALL btc you own and pay taxes on it before taxes due...i mean really....keep track and document every btc transaction you have ever done and do capital gains on it ..jeez
so again i suspect it will 'evolve' back to you buy equip it is your risk (no more deductions .) er maybe ..just thought them giant PH farms may have enough clout to keep that in..hmmmm...anyway and if you 'spend the coin" like 'selling a stock" you pay capital gains..which again is up to the individual to keep track of or suffer consequences with IRS etc
this whole land/keep track of each bitcoin capital gain you ever made etc etc will all go away imho
but again only giant PH farms by 2015 anyway imho...and again I have a hard time believing the IRS is gonna let such farms 'mine' btc (ie $$$) out of 'air' and not tax them 25% of gross income.....that would be the line I think the IRS will not cross..thus mining will go overseas to say Belize? Denmark? where they would want the $$$ to flow in country and be a bitcoin hub again imho
hmmm.....looking at above PH farms etc...maybe they will keep equip deductions too....not sure how that will work out ..
anyway home mining for btc at least if you look at difficulty vs what you can get for btc vs just buying btc is prob dead
moving on to alt coins (have to make my nut for the IRS don't ya know heh) me always being the tail end of the dog
that will also go 'odd' as soon as I touch an alt miner (its a gift)
anyway what do I know I sure did not see the current IRS guidelines (the weird parts stated above) pop'ing up 20 days before Tax day...
who knows?
Searing
(just my 'hopeful' guesses?)
