Prepare to defend yourselves: IRS comes after Bitcoin

[The2ndAmendment]

Interesting that the IRS is ruling it as property. I wonder if this means bitpay and other bitcoin related businesses will relocate outside of the USA now.

Good thing for payment processor www.gocoin.com that they are not in the USA

The bigger question is how could the IRS possibly enforce this? With help from the NSA?

Why do you think the NSA data mining was implemented? Terrorism? C'mon!

It was evident that the NSA was going to be the primary tool used against Bitcoin and other CRYTPOCURRENCIES.

 

[The2ndAmendment]

I'm not too worked up over this. Bitcoin is a financial instrument. If people are going to invest or speculate in it, then gains and losses should be treated the same as those involving other financial assets. BTW, that means income and cap gains taxes, not a property tax.

The real issue is why we pay capital gains taxes on anything.

To feed the parasites. Be it Too-big-to-fail bankers or Too-lazy-to-work losers.

 

[dblack]

I'm not too worked up over this. Bitcoin is a financial instrument. If people are going to invest or speculate in it, then gains and losses should be treated the same as those involving other financial assets. BTW, that means income and cap gains taxes, not a property tax.

The real issue is why we pay capital gains taxes on anything.

Because, a few centuries back some smart folks figured out that real power was to be had by controlling the flow of money.

 

[The2ndAmendment]

Just revolt already assholes. Or shut up. Bitcoin was a gay idea anyway hahahaha!!!

Notice how liberals rejoice in the destruction of Bitcoin, because it was the only peaceful thing that threatened them.

 

[Toro]

So if a gorup of people started to claim that spilt twigs was a currency, could the government then tax split twigs (medieval Tally stick system in England)?

Yes. The gain on the twigs would be a capital gain. That's the law today.

Furthermore, even if what you claim is true, CONGRESS has to ACT in order to tax it. A group of unelected bureaucrats at the IRS do not have that authority. That is taxation without representation.

That is incorrect. The agency has the power to interpret the law. If you disagree, you can sue in a court of law.

 

[The2ndAmendment]

That is incorrect. The agency has the power to interpret the law. If you disagree, you can sue in a court of law.

That is no mere interpretation, that is rewriting law (in this case appending to it).

But your defense of the Centralized Banking scam has been well noted for the past 12 months.

 

[Toro]

That is incorrect. The agency has the power to interpret the law. If you disagree, you can sue in a court of law.

That is no mere interpretation, that is rewriting law (in this case appending to it).

But your defense of the Centralized Banking scam has been well noted for the past 12 months.

The law states that all profits or losses on capital will be taxed under the laws of taxation for capital gains. If something goes up in value and you sell it, it will taxed as a capital gains. Likewise, if it goes down and you lose money on it, you will be able to claim capital loss. Bitcoin is no different, nor should it be. It doesn't matter if the capital gain is on currencies, twigs or Bitcoin.

 

[The2ndAmendment]

That is incorrect. The agency has the power to interpret the law. If you disagree, you can sue in a court of law.

That is no mere interpretation, that is rewriting law (in this case appending to it).

But your defense of the Centralized Banking scam has been well noted for the past 12 months.

The law states that all profits or losses on capital will be taxed under the laws of taxation for capital gains. If something goes up in value and you sell it, it will taxed as a capital gains. Likewise, if it goes down and you lose money on it, you will be able to claim capital loss. Bitcoin is no different, nor should it be. It doesn't matter if the capital gain is on currencies, twigs or Bitcoin.

And if they are not trading it/selling/exchanging it for Federal Reserve Notes, what then?

Suppose someone lived purely off of bitcoin, and had no USD (except the annual conversion to pay taxes, such as local property taxes)?

 

[Toro]

And if they are not trading it/selling/exchanging it for Federal Reserve Notes, what then?

Suppose someone lived purely off of bitcoin, and had no USD (except the annual conversion to pay taxes, such as local property taxes)?

If you buy Bitcoin, then use it as a medium of exchange, it would not be taxed, just like any other currency. If you buy Canadian dollars, then use the Canadian dollars in exchange for that good, it's not taxed. But if you buy Canadian dollars then sell Canadian dollars for a profit, then you will be taxed on the profit. If you sell Canadian dollars for a loss, you will be able to claim the loss to lower your taxes. Bitcoin is no different.

 

[Vigilante]

And so it starts.....

 

[JakeStarkey]

2d A's head is exploding. Love his melt down.