its going to be reaaally difficult for them to audit all blockchain transactions.. are they going to hire blockchain savvy auditers? like thousands of them? I don't see them being able to police all of this properly
Agreed - not sure how the enforcement would work. But while the IRS may not be able to easily determine the "right" amount, they could pretty easily determine if you did it wrong if you don't report Cap Gains and have used bitcoins at all. So they can at least force you to go through extra hoops and/or risk being audited, which can discourage their mainstream use.
Time to blow out of this trade lol. Oh well it was worth a shot. Eh maybe I'll give a clear breakdown past 500
Well that's that. I've amended my return to report the gain all as ST with no 1099-B received. Naturally I kept track of the basis and proceeds so it was virtually painless.
i think it will add to the case for mainstream use because it gives individuals more flexibility on how to structure their taxes if they are largely living on bitcoin transactions.. makes it possible for clever tax techniques that weren't possible with the average earning individual before
http://gigaom.com/2014/03/28/this-w...es-bitcoin-is-property-price-falls-below-500/ huge blow to american bitcoin holders
In practice, this IRS ruling isn't made to deal with the nature of bitcoin.. I see it changing or just ending up not being enforced properly enough. They are definitely planning on making revenue from Wall St. profits, though. Investors can and will be audited because it makes sense from the IRS' effort:cost:revenue ratio POV. going after the average consumer is going to be so difficult that it won't be worth it
also, in the event you are an 'investor' and you've made let's say for example, a 100% gain... there will be enough local demand for bitcoin.. you can make a P2P transaction for fiat. bitcoin exchanged for a colored coin tied to the notarized deed/title to a home will be considered a 'like-kind exchange' so I think buying real estate will be a great way to utilize these tax loopholes when people are looking to divest their bitcoin gains, perhaps.
I'm convinced now is the time to buy. The Chinese are driving down the price. Conspiracy. The IRS ruling made The Atlantic declare BitCoin's future dead. If Mt Gox couldn't kill BitCoin, the IRS and China won't either. There is one simple, undeniable fact that keeps BitCoin alive and well. Anonymous money.
More than anonymous money, it's money that is finite in supply therefore doesn't decline in value over time.
And as has been explained, this is actually Bitcoin's biggest weakness - money works best when it can react to demand, as can be demonstrated by the Great Depression when people literally ran out of physical dollars. I mean, seriously, if you want to deal with a cryptocurrency that has a viable future as a currency and not as a get rich quick scheme...Dogecoin is the smarter investment over the long term. No, seriously, Dogecoin may be a joke, but it's economics are actually smarter.
