Who is buying Bitcoin? Why do they buy it?

[freecoin]

.. but the moment you sell those 100 bitcoins for $800 you have to report that.  Having bitcoins is like having 100 jpgs or 100 bookmarks, you don't report jpgs on your taxes even though they may have value, but if you sell them then you report that, same thing.

I respectfully disagree.  There is no requirement.  We have been greatly deceived.  Unfortunately I don't have much in the way of proof.  I've personally operated outside the FR system and not paid income tax in years.  I conclude that the IRS agrees with me since I have no legal issues.

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[eleuthria]

.. but the moment you sell those 100 bitcoins for $800 you have to report that.  Having bitcoins is like having 100 jpgs or 100 bookmarks, you don't report jpgs on your taxes even though they may have value, but if you sell them then you report that, same thing.

I respectfully disagree.  There is no requirement.  We have been greatly deceived.  Unfortunately I don't have much in the way of proof.  I've personally operated outside the FR system and not paid income tax in years.  I conclude that the IRS agrees with me since I have no legal issues.

Good luck with that if they ever catch on.  Just because you haven't been audited yet means nothing.  When you do get audited, enjoy the interest and penalties.  There are thousands of people out they operating under the:  "I haven't been taken to tax court yet, so I must not be doing anything wrong" theory.  Ignorance won't get you off the hook.  Make sure you hire a CPA experienced in audits, they'll save you a lot of money when the time comes.

[Alex Beckenham]

There simply aren't enough bitcoin using businesses

That you know of.

[Gameover]

.. but the moment you sell those 100 bitcoins for $800 you have to report that.  Having bitcoins is like having 100 jpgs or 100 bookmarks, you don't report jpgs on your taxes even though they may have value, but if you sell them then you report that, same thing.

I respectfully disagree.  There is no requirement.  We have been greatly deceived.  Unfortunately I don't have much in the way of proof.  I've personally operated outside the FR system and not paid income tax in years.  I conclude that the IRS agrees with me since I have no legal issues.

I have heard that as well but would rather pay 30% than having a chance of going to federal prison.  Either you don't make very much (little risk of being audited) or are delusional in thinking that any argument you make will hold up in court and not land you with heavy fines much beyond what you owe or prison time.  Besides our tax rate is much lower than almost every other industrialized nation, even though most of it is squandered

[darthjee]

The reasons to buy/use Bitcoins are many, but the opportunity to trade OUTSIDE the Federal Reserve system, and perhaps your country's central bank too (quite possibly hastening its demise), and its associated tax is probably one of the greatest reasons.  What I'm saying is, once you dig into it, you will discover the US Federal Income Tax is an excise on banking within the Federal Reserve System.  From a legal standpoint, bitcoins are not "income" under the Revenue Acts of the United States.  Unless of course you consent to consider them income; in this day of heavy conditioning (brainwashing), that's always an option.  I asked a tax attorney about bitcoin and he said they were "includible" in gross income.  I then said "oh, I can include them if I choose to."  And he just laughed at that.  My interpretation is... gotcha.

http://savingtosuitorsclub.net/showthread.php?145-Exactly-what-does-the-IRS-agent-think
http://losthorizons.com/CtCforFree.pdf

Of course, have 100 bitcoins in your account is meaningless, but the moment you sell those 100 bitcoins for $800 you have to report that.  Having bitcoins is like having 100 jpgs or 100 bookmarks, you don't report jpgs on your taxes even though they may have value, but if you sell them then you report that, same thing.

well, you can buy bit coins, to startup the system, bring the coins to your location ... once you have that, and enough local business and people are accepting them, you can start circulating it and avoiding taxes

[acamus]

The reasons to buy/use Bitcoins are many, but the opportunity to trade OUTSIDE the Federal Reserve system, and perhaps your country's central bank too (quite possibly hastening its demise), and its associated tax is probably one of the greatest reasons.  What I'm saying is, once you dig into it, you will discover the US Federal Income Tax is an excise on banking within the Federal Reserve System.  From a legal standpoint, bitcoins are not "income" under the Revenue Acts of the United States.  Unless of course you consent to consider them income; in this day of heavy conditioning (brainwashing), that's always an option.  I asked a tax attorney about bitcoin and he said they were "includible" in gross income.  I then said "oh, I can include them if I choose to."  And he just laughed at that.  My interpretation is... gotcha.

http://savingtosuitorsclub.net/showthread.php?145-Exactly-what-does-the-IRS-agent-think
http://losthorizons.com/CtCforFree.pdf

Of course, have 100 bitcoins in your account is meaningless, but the moment you sell those 100 bitcoins for $800 you have to report that.  Having bitcoins is like having 100 jpgs or 100 bookmarks, you don't report jpgs on your taxes even though they may have value, but if you sell them then you report that, same thing.

The great thing is you only need to report it once the dollars become "real". No need to report mtGox dollars or Dwolla dollars. Only once it hits your bank account. I would just seriously hope dwolla doesn't get shut down.